Mumbai, May 29: Market regulator Sebi on Tuesday started the process of refunding money to those who had invested in two Sahara group companies through optionally fully convertible debentures (OFCDs). The regulator, under directions from the Supreme Court, issued a four-page format for application that investors in Sahara India Real Estate Corp (SIRECL) and Sahara Housing Investment Corp (SHICL) should use to claim refund from the regulator.

After the apex court ruled that the OFCD offers that two Sahara group companies had used to mobilize money from investors through the private placement route were not according to the law, it had ordered the Lucknow-based group to deposit about Rs 25,000 crore with Sebi. In turn, Sebi was entrusted with the responsibility to refund this money to Sahara's OFCD holders.

On its part, the two Sahara companies together deposited about Rs 5,100 crore with the regulator, and claimed that the balance amount was already returned to the investors. However, Sebi insisted that the Sahara group firms should deposit the full amount with it rather than just about 20%. The apex court has asked Sebi to start the process of refund to OFCD holders.

A release from Sebi said that as per the Supreme Court order of May 8, 2013, the regulator initiated the process of refund to the genuine investors who have submitted or would be submitting their claims, in the format that it put up on its website. "The order... permitted the refund of the money so far deposited with Sebi (by Sahara companies) to the genuine investors with interest, after verifying the genuineness of the documents. As far as genuine investors with multiple deposits are concerned, their claims will be kept on hold till further directions from the Supreme Court," the release said.