Home / Companies / SAT asks Sebi for details in DLF case

Mumbai: The Securities Appellate Tribunal (SAT) on Monday asked the Securities and Exchange Board of India (Sebi) to submit copies of communications exchanged with merchant bankers, lead managers and auditors of DLF Ltd during the course of its investigations against the property developer.

“We want the correspondence between Sebi, the lead managers and the auditors of DLF," said Jog Singh, member, SAT.

Sebi on Monday said it has received many complaints against DLF from investors.

While most of these complaints are not on record, Rafique Dada, a lawyer representing Sebi, said the capital market regulator launched an investigation against DLF on the direction of the Delhi high court, which was hearing a case filed by Kimshuk Sinha against India’s largest developer.

On Monday, SAT was hearing of a plea filed by DLF seeking relief from a ban ordered by Sebi.

Sebi through a 13 October order barred DLF and its top executives from accessing the capital market 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.

DLF has maintained that no investor had complained to Sebi against the company.

SAT will now hear the matter on a daily basis till 24 November.

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 offering (IPO) raised at least 9,187.5 crore, which was the largest IPO till then.

Sebi alleged that DLF’s draft red herring prospectus 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 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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