Order in the matter of Sahara Mutual FundSAT Appeal No.117/2018]SAT Appeal No.127/2018]SAT Appeal No.128/2018]

IN THE MATTER OF SAHARA MUTUAL FUND In respect of: 1. Sahara Mutual Fund [SEBI Registration No. - MF/030/96/0]; 2. Sahara Asset Management Company Private Limited, the Asset Management Company 3. Board of Trustees, namely Mr. S.P. Srivastava, Mr. Sanjiv Kapoor and Mr. M.R. Siddiqui; 4. Sahara India Financial Corporation Limited, the Sponsor.

1. Securities and Exchange Board of India (hereinafter referred to as 'SEBI') vide order dated July 28, 2015 had ordered cancellation of Certificate of Registration of Sahara Mutual Fund (hereinafter referred to as 'Sahara MF') with effect from expiry of 6 months from the date of the order. 2. Subsequently, Sahara MF, Sahara Asset Management Company Private Limited (hereinafter referred to as ‘Sahara AMC’) and others had preferred an appeal against the SEBI order dated July 28, 2015 before the Hon’ble Securities Appellate Tribunal (SAT). The Hon’ble SAT vide order dated July 28, 2017 disposed of the said appeal, granting a period of 6 weeks to the appellants to approach the Hon’ble Supreme Court of India. 3. Sahara MF and others subsequently filed an appeal in the Hon’ble Supreme Court, challenging the aforesaid order of the Hon’ble SAT. The said appeal was dismissed by the Hon’ble Supreme Court vide order dated October 23, 2017. 4. Thereafter, SEBI vide letter dated November 21, 2017 instructed Sahara MF to strictly comply with the timelines specified in SEBI order dated July 28, 2015 which became effective from October 23, 2017 (i.e. the date of the order passed by the Hon’ble Supreme Court dismissing the abovementioned appeal).

Order in the matter of Sahara Mutual Fund

5. Subsequently, Sahara MF vide letter dated January 15, 2018 has inter alia submitted to SEBI the following: i. In order to comply with the directions of SEBI, efforts are being made by Sahara Mutual Fund and the present sponsor to find a new sponsor for taking over the activities of mutual fund and AMC but it appears that this process may take some time. ii. …Sahara MF had floated a tax saver scheme, i.e., Sahara Tax Gain Fund with a lock-in period of three (3) years. Under this scheme there are 748 investors who have invested between 24th March, 2015 to 27th July, 2015. As per the scheme, the units cannot be redeemed before expiry of three (3) years from the date of investment. iii. As such, in the interest of unit holders it is requested that the period of transfer of activities of Sahara Mutual Fund and AMC to new sponsor and also period for redemption of units in the event of failure to complete the process of transition, may be extended so as to cover the redemption of units of Sahara Tax Gain Scheme. 6. SEBI has considered the representation of Sahara MF that implementation of the timelines specified in SEBI order dated July 28, 2015, could lead to denial of benefits to the investors of ‘Sahara Tax Gain Fund’ under the provisions of the Equity Linked Savings Scheme, 2005 and may not be in the interest of investors.

7. In view of the foregoing, in exercise of the powers conferred upon me in terms of Section 19 of the Securities and Exchange Board of India Act, 1992, I hereby modify the directions issued vide SEBI order dated July 28, 2015 to the extent as follows: a. Sahara MF is directed to wind up all its schemes (other than ‘Sahara Tax Gain Fund’) by April 21, 2018 b. Sahara MF is permitted to continue to run its ‘Sahara Tax Gain Fund’ till July 27, 2018. However, Sahara MF shall not accept any new investor under ‘Sahara Tax Gain Fund.’ c. Sahara MF is directed to compulsorily redeem each investment in ‘Sahara Tax Gain Fund’ as and when the lock in period expires. d. Sahara MF is granted time till August 27, 2018 to complete winding up of the ‘Sahara Tax Gain Fund’. e. Sahara MF is directed to surrender the certificate of registration to SEBI by August 27, 2018. f. The Trustees of Sahara MF and the Registrar and Transfer Agent, namely M/s Karvy Computershare Private Limited are directed to ensure that contact details and the bank details of all the investors of ‘Sahara Tax Gain Fund’ are updated so that redemption proceeds can be sent to the investors without any delay.

g. The trustees of Sahara MF are directed to file a monthly report to SEBI updating the status of the redemption process from April 2018 till the winding up of all Schemes. 8. The order shall come into force with immediate effect.

DATE: April 11, 2018 G MAHALINGAM PLACE: Mumbai WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA