The name of a Sahara group entity has emerged in the ongoing controversy related to the National Spot Exchange (NSEL). Sahara entity ó Sahara Q Shop Unique Products Range Ltd ó has the highest outstanding exposure among all entities that traded on NSEL through Indian Bullion Market Association (IBMA)
According to the latest data released by the crisis-hit exchange, the Sahara entity has been listed as a client of IBMA with a total exposure of Rs 226.96 crore. This accounts for nearly 20% of the total outstanding exposure of IBMA at R1,171 crore.
The name of Sahara Q shop had also emerged as part of the probe by the Securities and Exchange Board of India (Sebi) while looking into the matter of two Sahara entities ó Sahara India Real Estate Corporation and Sahara Housing Investment Corporation ó that raised over R24,000 crore between 2008 and 2011 through OFCDs (optionally fully convertible debenture).
Last year in August, Supreme Court directed the two entities to refund over R24,400 crore along with 15% interest in August last year. Later, however, the apex court granted some relief to the diversified business house, which were opposed by the capital market regulator. Reports suggested that Sebi suspected that Sahara was delaying the process so that it could get more time to divert depositors from the two companies to some new scheme that would fund their latest initiative ó Sahara Q Shop.
Interestingly, IBMA ó through which Sahara Q Shop traded on NSEL Ė is itself engulfed in controversy after the Forwards Market Commission (FMC) highlighted the fact that the entity is related to NSEL, which has 60.88% equity and common directors in IBMA. On Tuesday, however, the commodities market regulator allowed NSEL to settle the outstanding of IBMA albeit with certain conditions.