Unrepentant DLF approaches SAT against Sebi order
19 Oct 2014 4:08 AM IST
India’s largest realty firm DLF on Friday approached the Securities Appellate Tribunal (SAT) to challenge the Sebi order barring it and top executives from capital markets for three years. The appeal would be heard by SAT on 22 October. In a major blow to DLF, the order had been passed by Sebi for ‘active and deliberate suppression’ of material information at the time of its IPO over seven years ago. DLF’s IPO in 2007 had fetched Rs 9,187 crore — the biggest IPO in the country at that time.
While the regulator did not impose 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 over Rs 19,000 crore as on 30 June, 2014, while its already-proposed fund raising plans include Rs 3,500 crore through issue of certain bonds to replace its costlier debt. It has annual turnover of nearly Rs 10,000 crore.
This was one of the rare orders by Sebi where it barred a blue-chip firm and its top promoter/executives from market. On Tuesday, DLF shares had plunged by nearly 30 per cent, eroding the market value by about Rs 7,500 crore. The stock regained some lost ground in the next trading session.
In his 43-page order, Sebi’s Whole-Time Member Rajeev Agarwal said that violations are grave and have larger implications on safety and integrity of the securities market. Besides K P Singh, those barred from the markets include his son Rajiv Singh (Vice Chairman), daughter Pia Singh (Whole Time Director), MD T C Goyal, ex-CFO Ramesh Sanka and Kameshwar Swarup, who was ED-Legal at the time of the company’s public offer in 2007.
While the regulator did not impose 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 over Rs 19,000 crore as on 30 June, 2014, while its already-proposed fund raising plans include Rs 3,500 crore through issue of certain bonds to replace its costlier debt. It has annual turnover of nearly Rs 10,000 crore.
This was one of the rare orders by Sebi where it barred a blue-chip firm and its top promoter/executives from market. On Tuesday, DLF shares had plunged by nearly 30 per cent, eroding the market value by about Rs 7,500 crore. The stock regained some lost ground in the next trading session.
In his 43-page order, Sebi’s Whole-Time Member Rajeev Agarwal said that violations are grave and have larger implications on safety and integrity of the securities market. Besides K P Singh, those barred from the markets include his son Rajiv Singh (Vice Chairman), daughter Pia Singh (Whole Time Director), MD T C Goyal, ex-CFO Ramesh Sanka and Kameshwar Swarup, who was ED-Legal at the time of the company’s public offer in 2007.
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