DLF Appeals SAT to lift Capital Market Ban
The ban on DLF made by SEBI from accessing the Capital market for 3 years has been opposed and an appeal has been filed against it by the top executives of DLF India Ltd. The appeal has been made to the Securities Appellate Tribunal (SAT) on 11th November.
What the appeal was about: The appeal made by DLF was filed against SEBI (Securities and Exchange Board of India) by executives of the company, DLF chairman K.P Singh, Ramesh Sanka, Rajiv Singh, Pia Singh and Tia Goyal. The tribunal has agreed upon hearing the appeals filed and the hearing will not only include the recent case filed but also those made on the market regulator’s order in October and that filed in December, last year. The ban imposed by SEBI did not involve any monetary prohibitions but barred DLF from carrying out any transactions of any kind including fun raising in the Capital Market. This is reported to have been rare order imposed on a blue chip firm which is estimated to have an annual turnover of 10,000 crore.
Previous allegations: Following a 4 yearlong investigation, SEBI had previously found DLF and its executives guilty of concealing information concerning the selling of public shares in 2007after which the orders and ban was imposed by SEBI. According to reports by SEBI, a red-herring draft prospectus did not disclose vital information about certain party transactions that had been carried out between DLF and its related subsidiaries during its initial public offering in 2007 that is reported to have been a record breaking one.This was alleged to be a deliberate suppression of vital facts that had the possibility of misleading investors. There had also been an FIR filed against the group by an individual over a land deal.
An auditor certificate has been asked on behalf of DLF by SAT to certify the reason for redeeming their mutual fund holdings. SAT had previously allowed them to do so which amounted to investments worth Rs. 1806 that would help service their loans till the 31st of December. The first hearing is expected to take place in November.
Source: Live Mint
Capital Market Ban, DLF, DLF allegations, Investments, mutual fund holdings, SEBI, Securities and Exchange Board of India, Securities Appellate Tribunal
