Sahara India Real Estate Corp.Ltd.& Ors vs Securities & Exch.Board Of India & Anr

The Supreme Court examined the powers of the Securities and Exchange Board of India (SEBI) under Section 55A(b) of the Companies Act, 1956, regarding the issuance and transfer of securities, specifically Optionally Fully Convertible Debentures (OFCDs) by Sahara India Real Estate Corporation Limited (SIRECL). The Court held that the issuance of OFCDs constituted a public issue under Section 73 and Section 60B of the Companies Act, and that the appellants violated the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000, and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009. Consequently, the Court ruled in favor of SEBI, affirming its authority to regulate such issues and the necessity for compliance with the relevant provisions of law.