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2017 (8) TMI 49 - SC - Companies LawProper status of a Promoter/Director of Sahara Sponsor who holds about 80% of its capital and who controls all Sahara Group Companies - Held that:- In the instant case SEBI itself found that two group companies of Sahara and its Directors were not conducting their business following the rules relating to public issue and were restrained from associating themselves with any listed Company or Company which intends to raise money from the public. It was also found that one of the Promoters/Directors is prima facie holding absolute control over the group companies. Given these facts and circumstances, lifting the corporate veil to the extent of identifying the role of the Promoter/Director in the impugned order cannot be faulted. In this context, the order of this Appellate Tribunal in the matter of Financial Technologies India Ltd. vs. SEBI [2015 (8) TMI 381 - SECURITIES APPELLATE TRIBUNAL MUMBAI] upholding the order of the WTM of SEBI holding the appellant company and directors therein not a fit and proper person solely based on the decision of the Forward Markets Commission is relevant. We also note that, though subsequent to the impugned order, the RBI has cancelled the certificate of registration granted to the Sahara Sponsor to carry on the activities of NBFC and has initiated steps to wind up the Sahara Sponsor under the RBI Act, with the Allahabad High Court (Lucknow Bench) restraining the Company from alienating its assets. In the result, we find no merit in the appeal. Accordingly, appeal is dismissed with no order as to costs. Consequently, Misc. Application No. 188 of 2017 becomes infructuous and the same is also disposed of accordingly.
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