SAT allows DLF to redeem MF investments

The Securities Appellate Tribunal (SAT) on Wednesday allowed real estate major DLF to redeem its investments in mutual funds worth Rs.1,8060000000. The Securities and Exchange Board of India (SEBI) imposed a ban on Delhi-based DLF and its top executives from accessing the capital markets for three years, for suppressing information in its initial public offering (IPO) prospectus and for ‘sham transactions’. While contesting this ban, in an interim order, the appellate tribunal allowed the debt-ridden company to redeem this fund till next month to service debt worth Rs.7670000000 in November and Rs.1,0390000000 in December. “This order is valid till December 31, 2014,” said lawyer Janak Dwarkadas, who is representing DLF. SAT is also scheduled to hold its next hearing on December 10 when the arguments in the appeal against the ban would resume. The Tribunal further asked the capital market regulator to file its replay to the DLF petition by November 30 and directed DLF to submit its rejoinder by December 8.