DLF Rebounds 3.6%; Company Clarifiies on Sebi Penalty

Shares of realty major DLF Limited rebounded after falling 2 per cent in the opening trades after the company clarified on the fresh penalty imposed by the Sebi.

 

Securities and Exchange Board of India (Sebi) on Thursday fined property developer DLF Ltd and its top management Rs 52 crore as part of a broader probe into the firm's lack of disclosures during its initial public offering (IPO).

 

The regulator last year banned the company from raising capital for three years as part of the same case, a verdict which DLF is appealing at a securities tribunal.

 

The Sebi concluded then that the property developer wilfully withheld details of all of its subsidiaries, as well as details of legal cases pending against those companies when it filed its IPO documents.

 

Meanwhile, the property developer DLF Ltd on Friday said it was reviewing an order from the country's market regulator that fined the company and its top management $8.4 million as part of a broader probe into the firm's lack of disclosure during its initial public offering.

 

"We are presently reviewing the said orders and after taking appropriate legal advice, we will challenge the said orders in appeal," the company said in a statement.

 

It added that it had not acted in contravention of law either during its initial public offer or otherwise.

 

DLF rebounded from intraday lows to close 3.6 per cent higher at Rs 155. The stock was underperforming the Nifty which was up 0.5 per cent.

 

(With inputs from Reuters)