Bangalore: Market regulator Securities and Exchange Board of India (Sebi) said it has put on hold the process for roping in an in-person verification (IPV) agency that was to help it ascertain genuineness of bondholders in the high-profile Sahara case.

It had begun the process in November for selecting an IPV agency to help it ascertain the credentials of bondholders of two Sahara group companies, which have been asked by the Supreme Court to refund the investors’ money.

Sebi has been asked to facilitate the refund, amounting to thousands of crores of rupees, after ascertaining the genuineness of about three crore investors from whom the companies had raised money through bonds.

After extending the deadline twice for submission of bids by PSU banks and KYC registration agencies (KRAs) for selection as an IPV agency in this case, Sebi on Tuesday said in a circular The notice inviting tender for assisting Sebi in KYC related IPV of bondholders (in Sahara matter) is hereby withheld until further notice.

The regulator did not give any reasons for withholding its notice inviting the tenders.

Sebi had first floated this tender on November 2 and had asked the public sector banks and KRAs to submit their applications by November 22. However, Sebi later extended the deadline for bid submission to December 21.

It again extended the deadline saying that the bids could be submitted till January 15. But after the expiry of this deadline Sebi has now decided to withhold the tender notice.

A pre-bid meeting was held by Sebi with interested parties on November 7, wherein at least four entities — Karvy, CAMS, NSDL and CDSL — had evinced their interest.

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