DLF tanks over 20% on Sebi ban

Shares of real estate major plunged 24% to Rs 111 after sebi barred real estate major and six of its top executives from accessing the capital market for 3 years.

DLF has tanked 24% to Rs 111, also its 52-week low on National Stock Exchange NSE) after the market regulator the Securities and Exchange Board of India (Sebi) barred the real estate major and six of its top executives, including Chairman K P Singh, from accessing the capital market for three years.

The Sebi order, after finding the company guilty of “active and deliberate suppression” of material information at the time of its public issue, leaves DLF out in the cold even as others capitalise on the current bull run, the Business Standard report suggests.

Meanwhile, DLF in a regulatory filing said that the same is being reviewed by DLF and its legal advisors. DLF and its Board wish to reassure its investors and all other stakeholders that it has not acted in contravention of law either during its initial public offer or otherwise.

DLF and its board were guided by and acted on the advise of eminent legal advisors, merchant bankers and audit firms while formulating its Offer documents. DLF will defend itself to the fullest extent against any adverse findings and measures contained in the Order passed by SEBI. DLF has full faith in the judicial process and is confident of vindication of its stand in the near future, it added.

The stock opened at Rs 132 and has seen a combined around 500,000 shares changed hands on the counter in early morning deals on NSE and BSE.