Tribunal Allows DLF to Redeem Rs 1806 Crore in Mutual Fund Investments

The Securities Appellate Tribunal (SAT) on Wednesday allowed DLF Ltd to redeem Rs 1806 crore in mutual fund investments, as the property developer continues to contest a regulatory ban on raising funds from capital markets.

DLF is in the midst of appealing a ruling last month from the Securities and Exchange Board of India (Sebi) that had barred the firm and some of its executives from capital markets for three years over suspected disclosure violations in its 2007 initial public offering.

The debt-laden firm has contested the decision to the Securities Appellate Tribunal (SAT) and had requested it be allowed to liquidate its mutual fund investments to meet cash requirements as the appeals process continues.

DLF had said it needed to service debt worth Rs 767 crore in November and Rs 1039 crore in December.

SAT is due to hold its next hearing on December 10 when the arguments in the appeal against the ban will resume.

Copyright: Thomson Reuters 2014