Market regulator SEBI has been asked by the Supreme Court of India to probe into the nature of investment scheme floated by Sahara Group in order to raise money from the public. A three judge bench headed by Chief justice S H Kapadia said that when the court itself was not clear about the term optionally fully convertible debentures (OFCD), how ordinary investors can understand it.

The bench also pointed out that the scheme was not meant for rural people and did not seem too convinced with the logic given by Sahara Group that OFCD scheme did not come under the purview of SEBI Act. However, the court also made it clear that that until and unless further directions are given the SEBI order will not be operational.