Subsequently, OCAL and Sahara MF filed an appeal with Securities Appellate Tribunal (SAT) seeking relief against the Sebi
Meanwhile, OCAL re-submitted the application after meeting requirements under regulation 7. This time Sebi
rejected the application on the grounds that OCAL was not a Sebi-approved asset management company (AMC) and timeline for completing the process of transfer of business of Sahara MF to Sebi-approved AMC had lapsed.
Subsequently, SAT directed Onelife to file fresh application with Sebi for purchasing 100 per cent equity capital of Sahara MF. The fresh application was filed on May 7, 2018.
To again assess the fit and proper criteria of OCAL, Sebi served show-cause notice to the company as to why its application should not be rejected. The market watchdog also initiated fresh proceedings against OCAL in its capacity of stock broker and trading member of BSE and merchant banker for alleged violations.
In a hearing with Sebi, OCAL representatives said that considering there was a drop in Sahara MF's net worth and many senior personnel had left its services, the company was reconsidering its decision to become sponsor of the fund house.
Following the hearing, OCAL communicated to Sebi in December, 2019, that it was withdrawing its application for sponsorship of Sahara MF. As a result, Sebi has ordered calling off the proceedings that was aimed at assessing the company's application.