Prashant Bhushan intervenes in Sahara-Sebi case, files petition in SC

.....Further, the companies do not follow prudential norms laid down by the Reserve Bank of India (RBI) for banks and non-banking finance companies handling similar or even lesser amounts of public money, the petition alleged. These norms include cash reserve ratio (4.75 per cent), statutory liquidity ratio (25 per cent) and capital adequacy ratio (10 per cent). “The omissions on account of investor protection stipulated in the Sebi Act on the issue of debentures have been detailed in the Sebi order,” the petition said. It also argued the manner in which these unsecured funds have been invested also make them extremely risky.....................

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