DLF’s plea against Sebi Order Admitted
The Securities Appellate Tribunal or SAT finally admitted the appeal of DLF Promoters against the Securities and Exchange Board of India or Sebi last week.
This order of ban against DLF promoters from accessing the capital markets have been admitted by SEBI, post the plea of the prompters. The ban was not just for DLF, but other six entities were also banned from accessing the capital markets.
The delegates of DLF, KP Singh along with Ramesh Sanka, MD of DLF and others like Rajiv and Pia Singh, T C Goyel, had approached SAT to call off the Sebi order. The prohibition was basically related to the non-disclosures of the transaction details as well as the concerned risks when DLF made around 9,187.5 crore just by an IPO. It was the largest gain in the country of that phase hence Sebi charged to ban DLF for three years.
At the beginning, DLF kept denying every allegation made against them and thus defended the company against all odd. Sebi found this nonchalant reaction of DLF to be unsatisfactory and consequently filed a petition to Delhi High Court, regarding this matter. Kimsuk Sinha had also filed an intervention petition at SAT that actually probed the Sebi to file the case under the direction of Delhi High Court. The petition was barely admitted as DLF continuously opposed fervently against the petition.
Sebi had passed a negative order against DLF and six other companies as well for vigorous and intentional suppression of relative information which eventually mislead as well as defraud the securities market investors.
SAT had declared interim relief to DLF in a different appeal that was filed by DLF. They were also allowed to exchange mutual fund investment equivalent to Rs 1808 crore. This was given out as service loans and subsidiary allowance.
Although there had been no momentary penalt, imposed on DLF but the company was literally sacked from making any deal like sales or purchase in the security market for about three years. This also included raising funds. The tribunal for hearing the company’s appeal will be held on December 10.
Source: Business Standard
