Mumbai : Banned by Sebi from the market for three years, real estate major DLF today argued before the SAT that the regulator had not followed the Fraudulent and Unfair Trade Practices (FUTP) rules while penalising the company, reports PTI.
The Securities Appellate Tribunal is hearing DLF’s plea against a Sebi order, passed in October, wherein the company and its six top executives were barred from securities markets
for three years due to non-compliance to disclosure norms during its IPO seven years ago. DLF lawyers on Friday concluded arguments. Securities Appellate Tribunal’s presiding officer
J P Devadhar said it will hear Sebi’s arguments from Monday.
Advocate Janak Dwarkadas, for DLF, contended that Sebi failed to furnish a post-investigation report under FUTP regulations and did not give DLF opportunity to represent itself, which is mandatory under the law.
Sebi, in its June 2013 show-cause notice, had accused DLF of “suppressing facts in the IPO offer document to defraud investors”. Advocate J J Bhat, representing some of the top DLF executives, including K P Singh, his son Rajiv Singh and daughter Pia Singh, said the notice did not speak about the role played by the directors in non-disclosure of information in the IPO offer documents.
“The Sebi Act does not provide for vicarious liability of directors,” said Bhat.
Meanwhile, SAT said it would hear the original complainant Kimsumk Krishna Sinha once it hears both Sebi and DLF.
