SAT Adjourns DLF Case Hearing To 12 January – Livemint – 25-Dec-2014
December 29, 2014 - Uncategorized
The Securities Appellate Tribunal (SAT) on Wednesday adjourned the hearing of an appeal filed by DLF Ltd against an order of the Securities and Exchange Board of India (Sebi) barring the developer and some key executives from the securities market for three years. The next hearing is on 12 January. DLF said that it may once again apply to the tribunal for allowing the company to redeem investments if it falls short of funds after 31 December to meet its dues. Earlier on 6 November, SAT allowed DLF to redeem Rs.1,806 crore in mutual fund holdings in order to service outstanding loans till 31 December. DLF has debt of over Rs.20,000 crore. On Wednesday SAT asked Sebi if it had exceeded its powers in charging DLF Ltd under the Fraudulent and Unfair Trade Practices Regulations. The Delhi high court had directed Sebi to investigate DLF only for violations of its Disclosure and Investor Protection guidelines. In response to SAT’s query Sebi counsel Rafique Dada said the regulator had the power to investigate under the Sebi Act and there was no need for the regulator to seek court permission to do so. On 13 October, Sebi passed an order barring DLF and its executives after finding them guilty of concealing material information while selling shares to the public in 2007. The initial public offering (IPO) raised at least Rs.9,187.5 crore, which was the largest IPO till then. Sebi alleged that DLF’s share sale prospectus did not disclose vital information about certain related-party transactions between DLF and its subsidiaries about the financials of the affiliates. The seven entities cited in the Sebi order include DLF, its chairman K.P. Singh and executives Rajiv Singh, T.C. Goyal, Pia Singh, Kameshwar Swarup and Ramesh Sanka.