India's largest realty firm DLF today approached the Securities Appellate Tribunal (SAT) to challenge a Sebi order barring it and top executives from capital markets for three years.
The appeal would be heard by SAT on October 22.
In a major blow to DLF, the order had been passed by Sebi for "active and deliberate suppression" of material information at the time of its IPO over seven years ago.
DLF's initial public offer (IPO) 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 the six persons, from any sale, purchase or any other dealings in securities markets for a period of three years, including for raising funds.
DLF had debt of over Rs 19,000 crore as on June 30, 2014, while its already-proposed fund raising plans include Rs 3,500 crore through issue of certain bonds to replace its costlier debt. It has annual turnover of nearly Rs 10,000 crore.
This was one of the rare orders by Sebi where it barred a blue-chip firm and its top promoter/executives from market.
On Tuesday, DLF shares had plunged by nearly 30 per cent, eroding the market value by about Rs 7,500 crore. The stock regained some lost ground in the next trading session.
In his 43-page order, Sebi's Whole-Time Member Rajeev Agarwal said that violations are grave and have larger implications on safety and integrity of the securities market.
Besides K P Singh, those barred from the markets include his son Rajiv Singh (Vice Chairman), daughter Pia Singh (Whole Time Director), Managing Director T C Goyal, former CFO Ramesh Sanka and Kameshwar Swarup, who was ED-Legal at the time of the company's public offer in 2007.
On October 13, DLF had said it has not violated any laws and it would defend its position against any adverse findings in the Sebi 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.
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".
