 "Sebi")
Regulator Sebi on Thursday imposed a penalty of Rs 1 million on realty major DLF for making wrong disclosures with regard to utilisation of funds raised through initial public offering.
The regulator conducted an investigation in the scrip of DLF for the period June-December, 2007 to ascertain any possible violation of the regulation.
It found that the company had made wrong disclosures to stock exchanges regarding utilisation of IPO proceeds.
"I conclude that the noticee (DLF) by making wrong disclosures as regards variation in projected utilisation of funds vis-a-vis actual utilisation of funds for the quarter ended September 2007, had violated the provisions of ... Listing Agreement," Sebi Adjudicating Officer B J Dilip said in an 18-page order.
In its filing to exchanges for the said quarter, DLF said it had utilised an amount of Rs 31.43 billion towards prepayment of loans, up to September 30, 2007.
However, as per the filing for December quarter 2007, DLF had shown the utilisation of funds under the same head - prepayment of loans- as Rs 24.69 billion, which was decremental as compared to the previous quarter.
More From This Section
According to DLF, it had clubbed Rs 6.73 billion from non-IPO proceeds with Rs 24.69 billion of IPO proceeds towards prepayment of loans for the quarter ended September, 2007.
" I note from the subsequent filing for December 2007 quarter wherein the amount utilised towards prepayment of loans was rectified and shown as Rs 24.6 billion, there was no explanatory statement furnished by the noticee as to how the figures got decreased compared to the previous quarter," the adjudicating officer noted.
According to Sebi norms, a company is required to make disclosures on a quarterly basis to stock exchanges indicating the variation between projected utilisation of funds and the actual utilisation of funds under the Listing Agreement.
