Mumbai: In a major blow to DLF, SEBI has barred the realty major as well as its six top executives, including chairman and main promoter K P Singh, from the securities market for 3 years for “active and deliberate suppression” of material information at the time of its IPO.

Besides K P Singh, those barred from the markets include his son Rajiv Singh (Vice Chairman), daughter Pia Singh (Whole Time Director), Managing Director T C Goyal, former CFO Ramesh Sanka and Kameshwar Swarup, who was ED-Legal at the time of the company’s public offer in 2007.

On its part, DLF said in a late night statement the order dated October 10 came to its notice only today and the same is being reviewed by DLF and its legal advisors.

The company, whose shares today fell by nearly 4 percent on the BSE, further said it has not violated any laws and it would defend its position against any adverse findings in the SEBI order.

“DLF has full faith in the judicial process and is confident of vindication of its stand in the near future,” the statement said.

After its over four-year-long probe, SEBI found that a “case of active and deliberate suppression of any material information so as to mislead and defraud the investors in the securities market in connection with the issue of shares of DLF in its IPO is clearly made out in this case.”

In his 43-page order, SEBI’s Whole-Time Member Rajeev Agarwal also said that violations are grave and have larger implications on safety and integrity of the securities market.

While the regulator has not imposed any monetary penalty, the prohibition order would bar DLF and the six persons, from any sale, purchase or any other dealings in securities markets for a period of three years, including for raising funds.

DLF had debt of more than Rs 19,000 crore as on June 30, 2014, while its already-proposed fund raising plans include nearly Rs 3,500 crore through issue of certain bonds.

This is one of the rare orders by SEBI where it has barred a blue-chip firm and its top promoter/executives.

For more visit: Business Standard

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