Market regulator Securities and Exchange Board of India (SEBI) on Monday barred property developer DLF Ltd and some of its executives including Chairman K P Singh from accessing capital markets for three years, citing non-disclosure violations related to its 2007 initial public offering.
The company and its top executives are found to have violated various regulations including SEBI’s Disclosure and Investor Protection (DIP) Guidelines and the PFUTP (Prevention of Fraudulent and Unfair Trade Practices) norms.
In a 43-page order, SEBI’S Whole-Time Member Rajeev Agarwal said ,”…In order to protect the interest of investors and the integrity of the securities market… (I) hereby restrain the following entities from accessing the securities market and prohibit them from buying, selling or otherwise dealing in securities, directly or indirectly, in any manner, whatsoever, for the period of three years.”
Those prohibited from the markets including Singh’s son Rajiv Singh (Vice Chairman) and daughter Pia Singh, SEBI said in its order.
DLF had raised Rs 9,187 crore through its IPO in 2007.
Shares in DLF, India’s biggest realty developer, ended 3.8 per cent lower at Rs. 146.90 on the National Stock Exchange. The stock was the top loser on the 50-share Nifty and underperformed the broader realty sub-index on the NSE, which closed 1.7 per cent lower.