Realty major DLF Ltd Tuesday said it would defend itself against any adverse findings contained in the order passed against it by market regulator Securities and Exchange Board of India (SEBI).
SEBI on October 10 barred DLF and six of its executives, including Chairman K.P. Singh, from participating in capital markets for three years for acting to “mislead” investors on the company’s public offer.
In a statement issued, DLF said the SEBI order is being reviewed by it and its legal advisors.
“DLF and its Board wish to reassure its investors and all other stakeholders that it has not acted in contravention of law either during its initial public offer or otherwise. 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,” the statement said.
“DLF will defend itself to the fullest extent against any adverse findings and measures contained in the order passed by SEBI. DLF has full faith in the judicial process and is confident of vindication of its stand in the near future,” the statement added.
SEBI member Rajeev Agarwal in his October 10 order published Monday said: “I find that the 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.
“I am satisfied that the violations as found in this case are grave and have larger implications on the safety and integrity of the securities market,” he added.
Those prohibited from the markets include the chairman’s son and vice—chairman Rajiv Singh, and daughter Pia Singh, who is whole-time director. Others barred are managing director T.C. Goyal, Kameshwar Swarup and Ramesh Sanka.
SEBI said the executives had violated various regulations including SEBI’s Disclosure and Investor Protection (DIP) Guidelines and the PFUTP (Prevention of Fraudulent and Unfair Trade Practices) norms.
The regulator’s DIP guidelines require that the initial public offer (IPO) prospectus contain all material information which shall be true and adequate so as to enable investors to make informed decisions on investing in the issue.
DLF had raised Rs. 9,187 crore through the IPO in 2007.
