SAT reserves DLF order

The real estate major had appealed against a SEBI order which barred the company and key officials from the market for three years

The Securities Appellate Tribunal (SAT) has reserved its order in DLF's appeal against the stock market regulator.

The real estate major had appealed against a Securities and Exchange Board of India (Sebi) order which barred the company and key officials from the market for three years. The ban was on account of disclosure violations related to its 2007 initial public offer (IPO).

The order is typically reserved after both sides have completed arguments, and the tribunal is now set to consider the merits of the same before passing a final order.  

The appeal follows a case filed by one K K Sinha. He had alleged a DLF subsidiary was involved in a land deal in which he is alleged to have been cheated of Rs 34 crore. He filed a police complaint in this regard. The regulator said this should have been disclosed to investors at the time of its IPO.

The company had raised Rs 9,000 crore by selling shares to the public through this maiden offering.  The ban from dealing in securities had resulted in the company being unable to access the capital had invested in mutual fund schemes. Fund houses had declined to allow redemption since MF units are technically securities and, therefore, come under the Sebi ban on DLF dealing. This was later allowed.

DLF shares were down 3.25 per cent to close at Rs 163.85 apiece on Friday; according to BSE data.