New Delhi: Doing an about-turn on the DLF initial public offering case, market regulator Securities and Exchange Board of India (Sebi) has submitted before the Delhi High Court that it can probe complaints against companies that intend to get listed.
“There is no direct bar (on investigation) in the case of non-listed companies,” the Sebi counsel informed the bench in response to a query whether there was any direct bar against such probe in the Sebi Act.
The regulator, earlier in its affidavit, had said that it cannot investigate complaints made against the real estate major as it was an unlisted company.
It had then said that the Ministry of Company Affairs was the right authority to deal with grievances in case of non-listed companies.
Sebi’s volteface came on 2 April during hearing on a public interest litigation (PIL) by the Society for Consumers’ Investors and Protection (SCIP), which had sought a probe into DLF’s conversion of debentures into equity shares.
The counsel for petitioner B cited the provisions under Sebi Act and Companies Act, which said that Sebi can investigate complaints against those companies which intend to get listed. In this case, DLF had filed red herring prospectus with Sebi, which clearly showed that the company wanted to get listed on the exchange.
The court later declined to pass any interim order on staying the proposed over Rs10,000 crore IPO by DLF, saying that “you (petitioner) have always remedy available to approach this court.”