Sebi ban: DLF stock plummets 27%, wipes out over Rs 6,700 cr investor wealth

Mumbai: India’s largest listed property developer DLF Ltd slumped nearly 27 percent on Tuesday, after market regulator Sebi barred the company from tapping the capital markets for three years.

At 12:30 pm, the stock was at Rs 109 on the BSE. The company’s market value dropped by Rs 6,727 crore to Rs 19,414 crore from yesterday’s Rs 26,141 crore.

The ban, a blow to the real estate company with a net debt of Rs 19,064 crore on 30 June, follows what the regulator said was DLF’s failure to provide key information on subsidiaries and pending legal cases at the time of its record-breaking 2007 initial public offering.

Sebi has barred the realty major as well as its six top executives, including chairman and main promoter KP Singh, from the securities market for three years for “active and deliberate suppression” of material information at the time of its IPO.

Besides KP Singh, those barred from the markets include his son Rajiv Singh (Vice Chairman), daughter Pia Singh (Whole Time Director), Managing Director T C Goyal, former CFO Ramesh Sanka and Kameshwar Swarup, who was ED-Legal at the time of the company’s public offer in 2007.

While the regulator has not imposed any monetary penalty, the restraining order would bar DLF and the six persons, from any sale, purchase or any other dealings in securities markets for a period of three years, including for raising funds.

with inputs from agencies