The two companies directed by SEBI are Sahara Housing Investment Corporation and Sahara Commodity Services Corporation.
The Sahara Housing Investment Corporation and Sahara Commodity Services Corporation started to raise money after bringing out optionally fully convertible debentures (OFCD) in Mar 2008 and Sep 2009.
While going through the prospectus filed by Sahara Prime City, SEBI found that the company breached its public issue norms by raising money through OFCDs. Both the entities were barred from raising money in Nov 2010.
"The two companies have issued OFCDs to 6.6 million investors," said SEBI to prove that the money that was raised was not private in nature. Also OFCDs come under the horizon of regulator, added SEBI.
The Sahara Group companies fought with the Indian courts arguing that issuing bonds were private and out of the horizon of market regulator.
The two Sahara companies have been stopped by SEBI from raising any funds till the company repays back all the money to the investors. Also Subrata Roy, Chairman, Sahara Group along with other directors from his company have been stopped by the regulator to stop their tie-up with any listed company or firm, which aims to raise money from the public till the investors are paid back.
Sahara Group firm, Sahara Housingfina Corporation had earlier said that Subrata Roy stepped down from the board of the company. No accurate reasons were given on why Roy left the office.