In its 43 page-order
that barred DLF Ltd from accessing the
capital market, Securities and Exchange Board of India (SEBI) had on
recently observed that there were probable violations of the Companies Act by
the company.
"For
non-disclosures, mis-statements, untrue statements in the RHP (red-herring
prospectus), the Companies Act also recognises civil and criminal liability of
persons authorising the issuance.
Thus... the legislative and regulatory scheme
in this regard is clear and the consequences for wrong disclosures, or engaging
in fraudulent activities in the IPO (initial public offering) processes, even
if noticed or revealed after the issuance of RHP / prospectus, as provided in
the SEBI Act and the Companies Act would follow," SEBI Whole-time Member
Mr. Rajeev Agarwal said in the order.
Non-disclosure..!
DLF failed to make
disclosure about 3 companies that SEBI findings indicate were the company’s
subsidiaries
Violation:
Failure to make
disclosures violates provisions of the Companies Act, 1956, and fair price
valuation norms of the I -T Act
On recently, SEBI
barred DLF Ltd, its promoters & other related entities, from accessing the
capital market for three years for "active and deliberate
suppression" of material information at the time of its Rs. 9,000-crore
IPO in 2007.
SEBI's probe had
revealed DLF Ltd used wives of key management personnel to buy shares of
subsidiaries.
In a showcause notice
to DLF Ltd, dated June 2013, SEBI had noted that three real estate firms,
Sudipti Builders, Felicite and Shalika, were at the heart of the controversy.
And even after divesting stake in these companies, DLF Ltd continued to retain
control in those, one of which was accused of fraud.
http://www.sebi.gov.in/cms/sebi_data/attachdocs/1413191997529.pdf
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