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In a major relief for realty major DLF, the Securities Appellate Tribunal (SAT) on Wednesday allowed the company to redeem Rs 1,800 crore invested in mutual funds.
SAT had earlier asked DLF to file an affidavit by November 3, specifying the purpose for redeeming its mutual fund investments.
DLF has mutual fund investments to the tune of Rs 2,500 crore, which are frozen following an order passed by Securities and Exchange Board of India (Sebi) that restrains the company from accessing the capital market for a period of three years.
DLF has also been unable to access pledged shares held by two of its subsidiaries in thirteen demat accounts, as they have been frozen by Central Securities Depository and National Securities Depository.
Shares lying in these demat accounts have been pledged with banks and financial institutions. These shares have been frozen resulting in the pledgee not being able to enforce it.
Markets regulator Securities and Exchange Board of India last month passed an order against DLF and six others for “active and deliberate suppression” of material information at the time of its IPO over seven years ago.
DLF's initial public offering in 2007 had fetched Rs 9,187 crore — the biggest IPO in the country at that time.
While the regulator did not impose any monetary penalty, the prohibition has barred DLF and six persons, from any sale, purchase or any other dealings, including for raising funds, in the securities markets for a period of three years.
