SEBI cancels Sahara MF’s licence, orders transfer of business to a new fund house

MUMBAI: The Securities and Exchange Board of India ( Sebi) has cancelled Sahara Asset Management Company’s licence, saying it's not a "fit and proper person" to carry out the business of mutual fund.

Sebi on Tuesday said Sahara's fund management licence would stand cancelled after 60 days from the date of the order. It has directed Sahara AMC not to take any new subscription from the investors including existing investors in systematic investment plans and also not to levy any penalties on the investors for not depositing the installments. Sebi has asked the fund house to transfer its activities to a new sponsor and a Sebi-approved AMC at the earliest.

"In the event of failure of Sahara MF to complete the process of transition within a period of five months from the date of this order, then Sahara MF should compulsorily redeem the units allotted to its investors and credit the respective funds to its investors, without any additional cost, within a period of 30 days thereafter and wind up the operations of the mutual fund," Sebi whole-time member Prashant Saran said in his order.