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| UPPING THE ANTE |
New Delhi/Mumbai, Oct. 17 (PTI): DLF today approached the Securities Appellate Tribunal (SAT) to challenge a Sebi order barring it and its top executives from capital markets for three years.
The appeal will be heard by the SAT on October 22.
In a major blow to DLF, the order was passed by Sebi for “active and deliberate suppression” of material information at the time of its IPO over seven years ago.
DLF’s initial public offer in 2007 had fetched Rs 9,187 crore — the biggest IPO in the country at that time.
DLF has informed the BSE that the company has filed an appeal before the SAT challenging the Sebi order.
“Copies of the appeal were served today and the Appellate Tribunal has fixed the hearing of the appeal on Wednesday, October 22, 2014,” the filing said.
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 the securities markets for a period of three years, including for raising funds.
DLF had a debt of over Rs 19,000 crore as on June 30, 2014, while its already-proposed fund raising plans include Rs 3,500 crore through the issue of certain bonds to replace its costlier debt. It has an 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 the markets.
On Tuesday, DLF shares had plunged by nearly 30 per cent, eroding 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 the violations were grave and had larger implications on the 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), managing director T.C. Goyal, former CFO Ramesh Sanka and Kameshwar Swarup, who was executive director-legal at the time of the company's public offer in 2007.
