Shares in DLF fell a huge 26 per cent in trade today and the magnitude of the fall alarmed investors as the share fall was steep, fast and furious. The stock was last trading at Rs 108 on the National Stock Exchange.
India's largest real estate player on Monday had been barred by the capital market watchdog, SEBI as well as its six top executives, including chairman and main promoter K P Singh, from the securities market for 3 years for "active and deliberate suppression" of material information at the time of its IPO.
Besides K P Singh, those barred from the markets include his son Rajiv Singh (Vice Chairman), daughter Pia Singh (Whole Time Director), Managing Director T C Goyal, former CFO Ramesh Sanka and Kameshwar Swarup, who was ED-Legal at the time of the company's public offer in 2007.
"DLF has full faith in the judicial process and is confident of vindication of its stand in the near future," the statement said.
After its over four-year-long probe, SEBI found that a "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."
In his 43-page order, SEBI's Whole-Time Member Rajeev Agarwal also said that violations are grave and have larger implications on safety and integrity of the securities market.
With inputs from PTI