In a 43-page order, SEBI has ruled that DLF had failed to disclose key information on some subsidiaries at the time of its IPO in 2007 (source: SEBI circular dated 10 Oct 2014). The ruling relates to complaints by Kimsuk Krishna Sinha regarding DLF’s IPO filed in 2007. Mr Sinha had also filed a First Information Report (FIR) against DLF’s subsidiary, Sudipti Estates. According to SEBI’s ruling, at the time of the IPO, DLF had tried to avoid reporting its association to Sudipti Estates. Following this, SEBI issued an order prohibiting DLF and six personnel from accessing the securities market for three years.
Impact on issuance of DLF REITs and CMBS
This order prohibits the company from issuing and listing REITs and CMBS. DLF has significant gross debt amounting to INR230bn and of late
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