DLF sought interim relief from the Tribunal for capital ban
DLF the realty firm is facing a three-year capital markets ban imposed by regulator SEBI, against which DLF has approached the Securities Appellate Tribunal (SAT) to challenge a Securities and Exchange Board of India (Sebi) order, which conducted its first hearing last week, during which the company had sought an interim relief from the Tribunal. While SEBI faced the flak for delay in passing the order and also for the adverse impact suffered by minority shareholders of DLF in the form of a huge 30 per cent plunge in the company’s market valuation in a single day post the order. While promoters own 74.93 per cent stake in DLF, foreign institutional investors have close to 20 per cent and retail shareholders have about 4 per cent among others. SEBI had barred DLF and six others, including the company’s chairman earlier this month from accessing capital markets for three years for “active and deliberate suppression” of material information at the time of its public offer more than seven years ago in 2007. In DLF’s plea it has sought clarification about whether the SEBI ruling would impact redemptions of mutual funds investments or raising funds via non-convertible debt. Janak Dwarkadas, a lawyer representing DLF, told the tribunal said, DLF had sought to redeem about 20 billion rupees ($327 million) of investments in mutual funds but was turned down by asset management companies because of the uncertainty about the SEBI ruling. DLF’s lawyers also asked if the company can raise 50 billion rupees in non-convertible debt approved by its board of directors before the SEBI ban order was passed.