The SAT observation came in response to a Sahara Group argument that the jurisdiction to regulate an unlisted public company lies with the Central government and not with the Sebi.

SAT also directed the ministry of corporate affairs (MCA) to produce before it a copy of its response to a query raised by Sahara Group in 2010 on whether the OFCD issued by the company fell within the purview of the Central government or the Sebi.

The matter came before SAT after Sebi directed two Sahara Group firms to refund money to investors in the companies optionally fully convertible debentures (OFCD) scheme. Earlier in July, the Supreme Court had directed SAT to expedite the case with in a period of eight weeks and also decide the jurisdiction to regulate such instruments. The Sahara counsel pointed out Section 55 A of the Companies Act, which makes a distinction between listed and unlisted public companies with relation to the issue and transfer of securities. (Indian Express)