Track2Realty-Agencies: DLF reached the door of Securities Appellate Tribunal (SAT) on Friday, Oct 17, against a SEBI order barring it and top executives from capital markets.
SEBI has barred not only the country’s largest real estate developer, DLF, but also its six top executives, including chairman and main promoter K P Singh, from the securities market for 3 years for “active and deliberate suppression” of material information at the time of its IPO.
However the regulator has provided some relief to the company by not imposing any monetary penalty. The prohibition has barred DLF and the six persons, from any sale, purchase or any other dealings in securities markets for a period of three years, including for raising funds.
DLF had debt of more than Rs. 19,000 crore as on June 30, 2014, while its already-proposed fund raising plans include nearly Rs. 3,500 crore through issue of certain bonds to replace its costlier debt.
This was one of the rare orders by Sebi where it has barred a blue-chip firm and its top promoter/executives from the market.
DLF is the largest real estate group in the country with nearly Rs. 10,000 crore annual turnover.
On Tuesday, the company shares had plunged by nearly 30 per cent, eroding the market value by about Rs.7,500 crore. However, the stock regained some lost ground in the next trading session.
It is pertinent to mention here that the DLF’s IPO in 2007 had fetched Rs. 9,187 crore — the biggest IPO in the country at that time.
As per the sources, appeal is likely to be heard by SAT next week.
