DLF rallies 5% after Tuesday's massive sell-off

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DLF rallies 5% after Tuesday's massive sell-off
DLF: Quotes, News
BSE 168.30BSE Quote1.35 (0.80%)
NSE 167.80NSE Quote1.2 (0.72%)
Shares in real estate major DLF rallied 5 per cent after falling a massive 26 per cent on Tuesday, following a SEBI ban on the company on raising money from the capital markets in the next three years.

The stock was last trading at Rs 114 on the National Stock Exchange.

India's largest real estate player, DLF, 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.

On its part, DLF said in a statement the order dated October 10 came to its notice only today and the same is being reviewed by DLF and its legal advisors.

"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.

While the regulator has not imposed any monetary penalty, the prohibition order would bar DLF and the six persons, from any sale, purchase or any other dealings in securities markets for a period of three years, including for raising funds.


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