SAT agrees to hear DLF’s plea against Sebi’s ban on Wednesday

By Accommodation Times News Services

sebiThe 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”.

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