One consequence of the Sebi-Sahara conflict could be an alteration in the Companies Law. The corporate affairs ministry is talking about how to change laws to stop ambiguities in the current legal authorities that regulates share and debenture sales. A top official in the law ministry says that it is considering of withdrawing ambiguity in laws governing private placement of safeties. Sale of securities to more than 50 people is presently thoughtful as a public issue and, thence, open to close regulatory investigation. If only 49 entities offer to a share or debt issue, it is take for private.

The applicable clause in Section 67 of the Companies Act says, "given that nothing contained in this sub-section shall employ in a case where the offer or request to offer for shares or debentures is made to fifty persons or more" Externally the ministry is wording how to close this loophole. The official said one way could be to stop it when framing rules below the new Companies Act. He, even so, did not stipulate how the revised wording could be. The Act was demode by the Lok Sabha in December but has to be improved by the Rajya Sabha.

Meanwhile, Sahara is warring a public battle to support its chief out of jail. At one point of time (in 2010) in the noise Sahara had claimed that the Corporate Affairs Ministry had parted with it saying that it had alone jurisdiction to analyze the company on this issue. The exhalations changed in Sebi's benignity when the minister changed. Now the courts are also behind the controller. In full page advertizing taken out in leading dailies on Sunday and Monday, disputable chief managing worker of Sahara India Pariwar, Subrata Roy Sahara has openly challenged the Sebi chairman or any of the controller's senior officials to face-off with him on live national telecast. The latest crusade began after Sebi inquired the Supreme Court to order the arrest of Roy and a few directors in his organization.

Roy wants to argument with Sebi how, with malafide intentions, it is hard to destruct Sahara's reputation, clean image and goodwill. Though he has queried Sebi's intention in going after Sahara, Roy has granted a clean chit to the courts and has thoughtfully not requested that anyone from the judiciary link issue with him on live television. When Sahara was first questioned by Sebi in 2010, it had argued that it does not have legal power over the debenture sale because it was a private arrangement. The regulator had then noted Section 67 of the Act to establish legal power.

Ever since it get down investigating Sahara, it has ellipse around just one issue as the ownership of the money that Sahara gathered and the individuality of the investors. While Sahara says that its army of workers cognize where precisely each of them lives, it is not amazed the postman cannot find them because they are too poor and often live by the boundary of national highways in temporary hovels. Nice try, but Sebi is not believing and it is now back in Supreme Court.

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