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Mumbai: The Securities Appellate Tribunal (SAT) on Friday adjourned to 22 December the hearing of a plea filed by builder DLF Ltd seeking relief from a ban ordered by the Securities and Exchange Board of India (Sebi).

Sebi through its 13 October order barred DLF and its top executives from accessing the capital markets and dealing in securities for three years.

Some of the top executives of DLF have filed a similar appeal in SAT against the markets regulator’s order seeking relief.

India’s largest developer and some of its top executives on Friday concluded their arguments in the case and Sebi will now present its case on 22 December.

DLF said while Sebi has charged the company with violation of the Fraudulent and Unfair Trade Practices regulations (FUTP), the capital markets regulator failed to follow the procedure laid down under the FUTP norms.

Janak Dwarkadas, senior counsel representing DLF, said that the capital markets regulator failed to furnish a post-investigation report under FUTP regulations and did not give DLF an opportunity to represent itself in the matter which is mandatory under law.

Sebi in its June 2013 show-cause accused DLF of “suppression of facts in the offer document to defraud investors."

J.J. Bhat, senior counsel representing some of the top executives of DLF, said that the Sebi show-cause notice did not refer to the role played by the directors of the company in non-disclosure of information in the offer documents.

“Sebi Act does not provide for vicarious liability of directors," said Bhat.

On 13 October, Sebi passed an order after finding DLF and its executives guilty of concealing material information while selling shares to the public in 2007. The initial public offer (IPO) raised at least 9,187.5 crore, which was the largest IPO till then.

Sebi alleged DLF’s draft red-herring prospectus (DRHP) did not disclose vital information about certain related-party transactions between DLF and its subsidiaries, about the financials of DLF’s subsidiaries, and a first information report (FIR) filed against the group by an individual over a 2006 land deal.

The seven entities cited in the Sebi order include DLF, its chairman K.P. Singh and executives Rajiv Singh, T.C. Goyal, Pia Singh, Kameshwar Swarup and Ramesh Sanka.

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