This refers to the report "DLF barred from accessing capital market for 3 years" (October 14). This makes sad reading for thousands of investors who have invested in DLF equity. Their investments have suddenly eroded by 20 per cent after the Securities and Exchange Board of India (Sebi) order. Sebi's order is the result of DLF raising equity through an initial public offering (IPO) in 2007 by resorting to non-disclosures and false statements in the Red Herring Prospectus. The order to ban DLF from raising funds for three years was delivered on October 13, 2014. It took the regulator seven years to take a decision, which is unacceptable.
Was Sebi sleeping over the matter because of the political connections DLF reportedly had with the old government at the Centre or did Sebi want to make amends for its inaction/slumber to please the new government? Whatever the reasons, investors have collectively suffered losses of about Rs 7,500 crore. Sebi's late reaction to the whole issue needs to be investigated by the government. Investors are always at the receiving end as a result of such a callous attitude - be it the Satyam scam or the DLF case.
R G Murali Bangalore
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