New Delhi/Mumbai : India’s largest realty firm DLF approached the Securities Appellate Tribunal (SAT) to challenge a Sebi order barring it and top executives from capital markets for three years, reports PTI.
The appeal would be heard by SAT on October 22. 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 initial public offer in 2007 had fetched Rs 9,187 crore — the biggest IPO in the country at that time. DLF informed the BSE that the company has filed an appeal before SAT challenging the SEBI order. “Copies of the appeal were served on SEBI today and upon mentioning the SEBI’s Appellate Tribunal has fixed the hearing of the appeal on Wednesday, the 22nd of October, 2014,” the filing added.
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 June 30, 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.