SEBI initiates penalty proceedings against DLF

03 Dec 2014 Evaluate

Market Regulator Securities Exchange Board of India (SEBI) has initiated penalty proceedings against realty major DLF and its promoters. These proceedings pertain to penalty for fraudulent and unfair trade practices (FUTP) and where there is no provision of a separate penalty.

According to reports, SEBI is examining the role of over 40 entities in the matter of inadequate disclosures during its 2007 public offering and these entities include the promoter, key management personnel, intermediaries and entities connected with the subsidiaries that were a part of the SEBI order dated October 13.

In its result in the month of November, DLF disclosed Sebi proceedings and stated that the order is awaited. As per regulations, the adjudicating order needs to be passed within four months of the order that found the parties guilty of violating securities law. Currently, the regulator is trying to ascertain what is the loss caused to investor in the matter and a penalty would be based on that. It could be three times of loss caused or Rs 25 crore whichever is higher.

DLF is one of India’s largest real estate companies that has over 60 years of track record of sustained growth, customer satisfaction, and innovation. The company has 314 msf of planned projects with 52 msf of projects under construction.

DLF Share Price

336.80 7.10 (2.15%)
Jul 07, 16:21 View Price Chart
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