Market regulator Securities and Exchange Board of India or Sebi on Monday barred property developer DLF Ltd and some of its executives from accessing capital markets for three years, citing non-disclosure violations related to its 2007 initial public offering.
Sebi was investigating whether the property developer disclosed in its IPO (initial public offering) documents the names of all of its subsidiaries and the legal cases pending against those companies.
In a 43-page order, Sebi said it will bar DLF and its chairman KP Singh along with five other company executives from accessing India's capital markets for three years.
"...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," Sebi said in its order.
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. (Track stock)
A DLF spokesman was not immediately available for comment.
With inputs from Reuters
