Sebi said Sahara's fund management licence would stand cancelled after 60 days from the date of order. It has directed Sahara AMC not to take any new subscription from investors including existing investors in systematic investment plans and also not to levy any penalties on investors for not depositing instalments. Sebi has asked the fund house to transfer its activities to a new sponsor and a Sebi-approved AMC at the earliest.

"In the event of failure of Sahara MF to complete the process of transition within a period of five months from the date of this order, then Sahara MF should compulsorily redeem the units allotted to its investors and credit the respective funds to its investors, without any additional cost, within a period of 30 days thereafter and wind up operations of the mutual fund," Sebi whole-time member Prashant Saran said in his order.