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No respite for DLF: Sebi receives multiple complaints

Sebi in its arguments which started Monday before the SAT pointed out that it was not just one complaint but there were multiple complaints received from investors against DLF.

Market regulator Sebi began its arguments Monday before the Securities Appellate Tribunal (SAT) against DLF . Sebi disclosed that it has received not just one but multiple investor complaints against the realty giant.

Earlier, DLF had questioned the market regulator’s order based on just one single complaint from Kimshuk Sinha.

Sebi in its arguments which started Monday before the SAT pointed out that it was not just one complaint but there were multiple complaints received from investors against DLF.

In fact Sebi was also not convinced that DLF was unaware of the FIR that has been registered against DLF and its subsidiaries at the time of filing for an IPO.

Sebi’s lawyer also argued that there were about 336 companies that ceased to be associates of DLF at the time of filing prospectus before the scheduled IPO in the year 2007.

Shalika which was another arm of DLF is the best example of a shell company as the transactions between the three subsidiaries including Shalika, Sudipti and Felicite, was layered in such a manner that would not have been suspicious.

Now SAT has directed Sebi to share the correspondence between Sebi, merchant bankers and auditors. It has also directed Sebi to submit the files between the period when DLF had submitted a DRHP (draft red herring prospectus) and the revised DRHP.

Sebi will continue with its arguments tomorrow and that is when we will get to know on the entire basis of its argument today. It was just the first day of Sebi’s arguments and the hearing will continue tomorrow as well.

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