In an interim order, the SAT said DLF can redeem its investment in mutual funds worth Rs767 crore in November, and the rest in December
The Securities Appellate Tribunal (SAT) has allowed real estate developer DLF to redeem Rs1,800 crore the company had invested in mutual funds, by next month.
In an interim order, the SAT said DLF can redeem funds worth Rs767 crore in November, and the rest in December.
Last month, DLF was banned from trading on stock exchanges for three years by market regulator Securities and Exchange Board of India (SEBI). The company was also barred from redeeming its investments.
DLF has invested about Rs2,500 crore in mutual funds. While SEBI had not imposed any monetary penalty, it prohibited the company and six persons from sale, purchase or any other dealings, including raising funds, in the market. DLF had challenged the SEBI ban and sought relief.
SEBI’s action was a result of DLF not disclosing details about three of its 353 subsidiaries and associate companies in its 2007 initial public offering (IPO) filing.
The company had garnered up Rs9,187 crore from the IPO, making it the biggest public offering in the country that year.
The Delhi-based developer had filed an affidavit with the SAT last week against the SEBI order, and filed a case against the market regulator in October.
While hearing the case last month, the SAT had asked SEBI to cite the reasons for banning DLF.
The Tribunal will next hear the case on 10th December.
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