The Securities Appellate Tribunal (SAT) on Friday quashed a Securities and Exchange Board of India (Sebi) order against realty firm DLF, lifting a capital markets ban on the company™s promoters and related entities. The case relates to alleged non-disclosure of information by the company during its initial public offering (IPO) in 2007, which had garnered about Rs 9,000 crore.
In October 2014, Sebi had banned DLF and its key officials from accessing the capital markets for three years.
Welcoming the SAT order, DLF and its board were guided by and acted on the advice of eminent legal advisors, merchant bankers and audit firms, while formulating its offer documents in 2007. ”
Following the Sebi ban, the stock had dropped to as low as Rs 105.
In its order, SAT chastised Sebi for the loss caused to investors following the order of the markets regulator, terming it a case of “over-regulation” by Sebi. “The jumbling up of rules, regulations and various provisions occurring and operating in different fields by the respondents (Sebi) in the impugned order has led to a grave miscarriage of justice in the present case.
