DLF sought in­terim re­lief from the Tri­bunal for cap­i­tal ban

Accommodation Times - - News - By Staff Re­porter

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.