SAT quashes SEBI ban on DLF with majority order

In a major relief for DLF, the Securities Appellate Tribunal (SAT), recently, passed a ‘majority order’, quashing the three-year market ban imposed on the realty giant by the Securities and Exchange Board of India (SEBI), even as the Presiding Officer dissented.

While DLF has already gone through five months of debarment, the SAT order will help it tap the markets for raising necessary funds for business, including through REITs and mortgage-backed securities.

Background:

SEBI, in October 2014, had barred DLF and six others from the capital markets for three years, alleging “active and deliberate suppression of material facts” during its over Rs.9,000-crore IPO more than seven years ago.

About SAT:

  • Securities Appellate Tribunal is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992 to hear and dispose of appeals against orders passed by the Securities and Exchange Board of India or by an adjudicating officer under the Act and to exercise jurisdiction, powers and authority conferred on the Tribunal by or under this Act or any other law for the time being in force.
  • It covers the whole of India.

Sources: The Hindu, sat.gov.in.

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