DLF seeks interim relief from Sebi's capital market ban

DLF, India's biggest listed property company, has on Wednesday appealed for interim relief from a three-year ban by the regulator from accessing capital markets.

The company has lodged its appeal with the Securities Appellate Tribunal (SAT), which will conduct its next hearing on October 30.

Seeking an interim relief, DLF said that it needs to redeem funds, including around Rs 2,000 crore locked in mutual funds as also through redemption of certain bonds worth further thousands of crores of rupees, but the Sebi order has restrained its position to access capital.

Last month itself, DLF had received shareholdes' approval to raise up to Rs 5,000 crore through non-convertible debentures (NCDs).

An intervention petition was also filed at SAT by Kimsuk Sinha, on whose complaint the Delhi High Court had directed Sebi to probe the case. However, Sinha's plea was opposed vehemently by DLF counsel and the petition was not admitted.

Earlier this month, Sebi barred DLF and six others from capital markets for three years for active and deliberate suppression of material information at the time of its IPO over seven years ago.

DLF's initial public offer in 2007 had fetched Rs 9,187 crore - the biggest IPO in the country at that time. While the regulator did not impose any monetary penalty, the prohibition has barred 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.

This was one of the rare orders by Sebi where it barred a blue-chip firm and its top promoter/executives from market.

DLF had debt of over Rs 19,000 crore as on June 30, 2014, while its already-proposed fund raising plans include Rs 3,500 crore through issue of certain bonds to replace costlier debt. It has annual turnover of nearly Rs 10,000 crore.