SEBI bars DLF, six top executives from markets for 3 years

October 13, 2014 04:55 pm | Updated November 17, 2021 04:25 am IST - Mumbai/ New Delhi

DLF Chairman K.P. Singh. File photo: Ramesh Sharma

DLF Chairman K.P. Singh. File photo: Ramesh Sharma

The Securities and Exchange Board of India (SEBI) imposed a ban on realty major DLF and its top executives from accessing the capital markets for three years, for suppressing information in its initial public offering (IPO) prospectus and for sham transactions.

PTI adds:

Those prohibited from the markets including Mr. Singh’s son Rajiv Singh (Vice Chairman) and daughter Pia Singh (Whole Time Director), SEBI said in its order.

“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,” SEBI’s Whole-Time Member Rajeev Agarwal said in his 43-page order.

“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. In my view, for the serious contraventions as found in the instant case, effective deterrent actions to safeguard the market integrity. It, therefore, becomes incumbent to deal with contraventions, digression and demeanour of the erring Noticees sternly and take appropriate actions for effective deterrence,” Mr. Agarwal said.

The company and its top executives are found to have violated various regulations including Sebi’s Disclosure and Investor Protection (DIP) Guidelines and the PFUTP (Prevention of Fraudulent and Unfair Trade Practices) norms.

As per the order, those facing the ban include T.C. Goyal (Managing Director), Kameshwar Swarup and Ramesh Sanka. All of these persons, including K.P. Singh and his two children, were part of the top management at the time of filing IPO documents.

About G.S. Talwar, who was also a non-executive director at that time, Sebi said it could not be established whether he was involved in day-to-day operations of the company and therefore it was giving him “benefit of doubt”.

DLF had raised Rs. 9,187 crore through its IPO in 2007.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.