SC refuses to stay DLF plan to sell rental assets

Allows Sebi plea for interim stay to be clubbed with appeal against SAT order

The Supreme Court on Wednesday refused to stay realty major DLF's plans to raise around Rs 12,000 crore by selling stakes in its rental properties.

In October, DLF had said that its board had approved plans to sell stakes in DLF Cyber City, which housed its rental assets, to reduce its debt.

Markets regulator Securities and Exchange Board of India (Sebi) had moved the apex court for interim relief barring the move. However, the bench headed by Judge J Chellameshwar was not convinced about the regulator's October 2014 order barring DLF and its top executives applying to these transactions, which are planned by other corporate entities related to DLF.

Sebi counsel argued that since the Sebi order specified that DLF cannot access the market or deal in securities either directly or indirectly, the move amounted to indirect access. While the court declined immediate relief for Sebi, it did not dismiss the Sebi appeal but said that it can be listed along with the main appeal against the Securities Appellate Tribunal (SAT) order which is pending in the court.

DLF shares jumped nearly four percent and were trading around Rs 125 mark on the BSE. SAT had by a majority decision set aside the Sebi order to ban the realtor and its top executives for alleged disclosure violations in its2007 IPO.