The Securities Appellate Tribunal reserved its order on the case related to real estate developer DLF, on Friday.

DLF had appealed to SAT against a SEBI order dated October 13, 2014, which banned DLF and six of its directors KP Singh (Chairman), Rajiv Singh, TC Goyal, Pia Singh, Kameshwar Swarup and Ramesh Sanka from trading in the securities market for three years.

Word of caution

The market regulator found them indulging in fraudulent and unfair trade practices and also held them guilty of suppressing important information, particularly on legal cases, in the red-herring prospectus for DLF’s initial public offering. Sounding a word of caution SEBI had said, “The market regulator has to deal sternly with companies and their directors indulging in manipulative and deceptive devices, insider trading, etc, or else they will be failing in their duty to promote orderly and healthy growth of the securities market.”

It said economic offence is a serious crime which, if not properly dealt with will affect not only the country’s economic growth, but also slow the inflow of foreign investment by genuine investors and casts a slur on India’s securities market.

“The message should go out that our country will not tolerate ‘market abuse’ and that we are governed by the ‘rule of law’,” it had said.

DLF shares closed 3.25 per cent lower at ₹163.85, on the BSE.

Related Topics