Some companies in India are more equal than others. Sahara is one such case. No clue about what they do.
They can show a thumb to RBI, go to the Supreme Court over a matter, scare the regulator into taking action,….
Congrats to SEBI for passing the order – surely Sahara will say the matter is pending before the Supreme Court. Not sure what the SC will say…but if Sahara asks for say 6 months time to repay all the money, there is a very good chance that Sahara will get it. The sad part is – Sahara should not have raised the money at all – so giving them time is like telling a thief…I will give you 6 months to put the cookie back in the jar..not sure what will happen though!
The even more sad part is the kind of people who invest in Sahara argue…’10 years..and nothing has happened’….and most of them do not read the newspaper. With the kind of political clout – especially in the Bimaru states, Sahara will continue to raise money.
RBI has not categorically said anything about companies like Sahara, Peerless, etc. …but as a lay investor if you think RBI and SEBI are here to protect your interest, please think again. You need to protect yourself. Regulators are here to speak the language of the strongest player..and twiddle their thumbs when the big player is playing with your money. RBI could only ‘advise’ SBI ‘not to do teaser loans’.
It actually hurt the industry, the competitors, AND FAR MORE IMPORTANTLY US THE SHAREHOLDERS,…but the ex Chairman continues to get his indexed pension. The new Chairman comes and provides Rs. 500 crores for the teaser loans..
Just wondering whether we can RTI the internal comments of what people said about these loans…the managers are too tight lipped. The past chairman took 2000 crores off the balance sheet…and the market took of 20,000 crores off the market cap…WE ARE THE LOSERS.
RBI and SEBI are too busy for us.
Sahara, as is wont, will get away by getting a very confusing order from SC…
Sadly my views on the current bond issue is not very different…after all they even lost their mutual fund license if you remember right…
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