ET Main The Economic Times App 10M Downloads Download ETLogin button Today’s News Quick Reads E-Paper Stock Recos Stream FINANCE READ ON APP Undistributed funds worth over Rs 25,000 cr with Sebi in focus after death of Subrata Roy Sahara founder Subrata Roy's demise puts focus on Rs 25,000 cr undistributed funds lying with SEBI Synopsis The death of Sahara Group's chief Subrata Roy has brought attention to undistributed funds totaling over Rs 25,000 crore in the capital markets regulator Sebi's account. In 2011, Sebi ordered two Sahara Group firms to refund money raised from nearly 3 crore investors through Optionally Fully Convertible Bonds (OFCDs), report said. By PTI Follow us Last Updated: Nov 15, 2023, 06:27 PM IST7 The undistributed funds totalling over Rs 25,000 crore lying with the capital markets regulator Sebi's account have come back into focus after the demise of Sahara Group's chief Subrata Roy. Roy passed away in Mumbai on Tuesday night at the age of 75 after battling a prolonged illness. ADVERTISEMENT He faced multiple regulatory and legal battles in connection with his group firms that were accused of circumventing regulations with Ponzi schemes, allegations his group always denied. In 2011, capital markets regulator Sebi ordered two Sahara Group firms -- Sahara India Real Estate Corporation Ltd (SIREL) and Sahara Housing Investment Corporation Ltd (SHICL) -- to refund the money raised from nearly 3 crore investors through certain bonds known as Optionally Fully Convertible Bonds (OFCDs). This order came after the regulator ruled that the funds were raised by the two firms in violation of its rules and regulations. ETPrimeET PRIME - POPULAR INDUSTRY STORIES Adani Group stocks: Will averaging out work for retail investors?Adani Group stocks: Will averaging out work for retail investors?Is Nifty Next 50 a good bet? Only if you are a super long-term investor.Falling off the momentum? Why retail investors are losing money after witnessing a long rallyReliance JioCinema is streaming IPL 2023 for free. Will this now disrupt the OTT business?Top Nifty50 stocks analysts suggest buying this weekLong term wealth creation; 7 stocks with high ROE Subscribe to ETPrime ADVERTISEMENT After a long process of appeals and cross-appeals, the Supreme Court on August 31, 2012 upheld Sebi's directions asking the two firms to refund the money collected from investors with 15 per cent interest. Sahara was eventually asked to deposit an estimated Rs 24,000 crore with Sebi for further refund to investors, though the