The Securities Appellate Tribunal (SAT) has allowed real estate developer DLF to redeem ₹1,800 crore it had invested in mutual funds, by next month. In an interim order, the Tribunal said DLF can redeem funds worth ₹767 crore in November, and the rest in December.
The company, which was banned last month by capital market regulator SEBI from trading on stock exchanges for three years, had also been barred from redeeming its investments.
Invested amountDLF has invested about ₹2,500 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/associate companies in its 2007 IPO filing.
The company had mopped up ₹9,187 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 Tribunal 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 December 10.