DLF to stock exchanges: Don’t seek clarification on every news item
In a rare confrontation on a regulatory requirement, realty giant DLF today asked the two top stock exchanges BSE and NSE not to seek clarifications on each and every news item about the company.
Under the Sebi regulations, <g data-gr-id="16">bourses</g> are required to seek clarifications from the listed companies about news reports containing price-sensitive information about them if the same has not been first informed to the investors through the stock exchange platform. If the companies fail to provide a proper reply or justification, they are liable for further action.
DLF, as also a host of other listed companies, have regularly been asked to provide such clarifications whenever any news report surfaces with price-sensitive information. Thursday, BSE had sought clarification from DLF on reports that the company might sell 25-30 per cent stake in its housing project in Delhi for Rs 800 crore to GIC. Replying to the BSE notice in this regard, DLF today said, “”We would like to humbly submit that seeking clarifications in each and every news item should be avoided by the exchange.”
In its regulatory filing, addressed to both BSE and NSE, the country’s largest realty firm said “the company during its normal course of business, keeps exploring various opportunities to enhance shareholders’ value, which includes M&A, divestment of assets and <g data-gr-id="23">fund raising</g> opportunities. “We would keep exchanges informed in case of any specific developments and the company shall continue to do so as part of its obligation under Clause 36 of Listing Agreement.”
DLF, which has a land bank of about 300 million sq ft including nearly 50 million sq ft under construction, said it would keep the exchanges informed “in case of any specific developments and the company shall continue to do so as part of its obligation under the Clause 36 of Listing Agreement”.