SAT allows DLF to redeem Rs.1,806 crore mutual funds

The Securities Appellate Tribunal (SAT) Wednesday allowed real estate developer DLF to redeem around Rs.1,806 crore worth of mutual funds till next month.

The SAT gave the interim relief on an appeal filed by DLF.

The tribunal permitted DLF to redeem Rs.767 crore worth of mutual funds in November and Rs.1,039 crore in December.

The company is in the process of appealing against Securities and Exchange Board of India's (SEBI) order last month banning it and six of its executives, including chairman K.P. Singh, from participating in capital markets for three years for acting to "mislead" investors on the company's public offer.

Those prohibited from the markets include the chairman's son and vice-chairman Rajiv Singh, and daughter Pia Singh, who is whole-time director. Others barred are managing director T.C. Goyal, Kameshwar Swarup and Ramesh Sanka.

SEBI said the executives had violated various regulations, including SEBI's Disclosure and Investor Protection (DIP) Guidelines and the PFUTP (Prevention of Fraudulent and Unfair Trade Practices) norms.

DLF raised Rs.9,187 crore through the IPO in 2007.