Mumbai, Oct 13: Regulator Sebi has barred realty major DLF, as also six top executives including chairman K P Singh, from securities markets for three years.
According to reports, the market regulator took the action after finding the company guilty of “active and deliberate suppression” of material information at the time of its public offer.
The SEBI order said that those prohibited from the markets included Singh’s son Rajiv Singh (vice-chairman) and daughter Pia Singh (wholetime director).
Sebi’s whole-time member Rajeev Agarwal in his 43-page order said: “I find that the 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.”
Agarwal said: “I am satisfied that the violations as found in this case are grave and have larger implications on the safety and integrity of the securities market.”
“In my view, for the serious contraventions as found in the instant case, effective deterrent actions to safeguard the market integrity. It, therefore, becomes incumbent to deal with contraventions, digression and demeanour of the erring notices sternly and take appropriate actions for effective deterrence,” Agarwal said.
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.
As per the order, those facing the ban include T C Goyal (managing director), Kameshwar Swarup and Ramesh Sanka. All of these persons, including K P Singh and his two children, were part of the top management at the time of filing IPO documents.
It may be noted that DLF had raised Rs 9,187 crore through its IPO in 2007.
(With Agency Inputs)