Mumbai : In a major interim relief to DLF, the Securities Appellate Tribunal allowed the realty giant to redeem mutual funds worth Rs 1,806 crore to meet working capital needs and service debt payments, reports PTI.
DLF had sought permission to redeem money locked in mutual funds after being slapped with market regulator Sebi’s ban last month that bars it from accessing the capital market for 3 years.
The final hearing in DLF’s main appeal against the Sebi order would commence on December 10, prior to which Sebi and the company will have to file their replies with Securities Appellate Tribunal (SAT).
“…Sebi order did not ban DLF from continuing its business, but only barred it from accessing the capital markets for three years,” a three-member SAT bench said. “It can be reasonably concluded that the appellant (DLF) should be allowed to use its own funds to meet its every day needs and other working capital requirements, including meeting its obligations to the creditors.