By Accommodation Times News Services
The Securities Appellate Tribunal (SAT) will on 22nd October, Wednesday hear real estate giant DLF’s appeal against the Sebi order that banned the company and six top executives from accessing capital market for three years. DLF on Friday, 17 October 2014 approached the Securities Appellate Tribunal (SAT) to challenge a Securities and Exchange Board of India (Sebi) order. The announcement was made after market hours on Friday, 17 October 2014.
Whereas Sebi did not impose any monetary penalty, the prohibition has barred DLF and the six executives from any sale, purchase or any other dealings in securities markets for a period of three years, including for raising funds. This was one of the rare orders by the capital market regulator where it barred a blue-chip firm and its top promoter/executives from market.
In his 43-page order, Sebi’s Whole-Time Member Rajeev Agarwal had said the violations are grave and have larger implications on safety and integrity of the securities market.
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”.
Besides KP Singh, those barred from the markets include his son Rajiv Singh (Vice Chairman), daughter Pia Singh (Whole Time Director), Managing Director TC Goyal, former CFO Ramesh Sanka and Kameshwar Swarup, who was ED-Legal at the time of the company’s IPO in 2007.
On October 13, DLF had said it had not violated any laws and it would defend its position against any adverse findings in the market watchdog’s order. “DLF has full faith in the judicial process and is confident of vindication of its stand in the near future,” the statement had said.