For interim relief, file affidavit on fund needs: SAT to DLF

The Securities Appellate Tribunal (SAT) on Thursday opened a window of relief for DLF where the company may be allowed to raise funds through redemption of its mutual fund investments. However, it will not come without DLF submitting a clear plan for fund requirement and the Securities and Exchange Board of India (Sebi) approving the same. DLF had approached the SAT for interim relief after the Sebi barred the company and seven individuals, including its chairman KP Singh, from accessing capital markets for three years for allegedly failing to provide key information on subsidiaries and pending legal cases at the time of its initial public offering (IPO) in 2007. Hearing the DLF petition, the three-member tribunal told the real estate major to submit an affidavit by November 3 with details of its fund requirement till December 31 and the amount of investment it plans to redeem. DLF has over Rs 2,0000000000 invested with mutual funds. The tribunal further said that it would examine the redemption request and may give its approval on November 5 if there was no objection raised by Sebi. The SAT also laid down a timeline and thereby looked to fast-track the case and pass the final order on December 10. The tribunal also asked Sebi to file its reply to the DLF petition by November 30. While Sebi did not oppose a relief, it objected to the DLF plea for an immediate open-ended interim relief, saying it could allow some relief provided the company submits an affidavit entailing the need for funds by redeeming the mutual funds. Shares of DLF rose by 4.9% following the proceedings at SAT and the Centre’s decision to relax FDI norms for real estate.