SEBI Challenges SAT's Relief for Sahara Managers in OFCD Case

SEBI is now asking the Supreme Court to reverse that carve-out. If successful, the ruling would tighten the liability of executives who sign off on securities documents, even when they act under delegated authority.

The case goes back to an October 2018 SEBI order that banned certain officials from the market and demanded full disclosure of SICCL's inventory. The company argued that the OFCDs were private placements to a small group, not a public offer requiring registration. The SAT rejected that argument, citing the sheer scale – more than 14,000 crore rupees raised from 1.98 crore investors.

For companies with similar fundraising structures, the pending appeal creates a clear risk. If the Supreme Court upholds SEBI's challenge, employees and mid-level officers who execute corporate actions could face the same enforcement exposure as board-level directors. The practical consequence: legal due diligence on every signature would deepen, especially in group entities where delegated signatures are common.

The hearing is scheduled for June 18.