SEBI seeks info on IPO probe, warns penalty against DLF

Sebi has summoned realty developer DLF and sought information as part the initial public offer (IPO) probe. The market regulator has warned penal action against DLF and may even initiate adjudication proceedings, reports Malvika Jain quoting sources. Penal action may be taken under section 11(C) (6) of Sebi Act, 1992.

According to sources, Sebi has asked DLF to furnish a reply to eight questions. These include list of promoters, directors, associates and subsidiary, related, connected & group companies. It has also asked the company to indicate its shareholding and relationship with Sudipti Estates Pvt. Ltd. (Sudipti), DLF Home Developers Ltd. & DLF Estates Development Ltd.. This information has been sought as on May 11, 2006, the date of filing of first DRHP, January 2, 2007 subsequent date of DRHF filing and as on July 1, 2012.

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Furthermore, SEBI has directed DLF to provide transfer date and details of Sudipti shareholding and provide clarity if the realty developer has any relation with new Sudipti shareholders. SEBI also wants DLF to confirm the date on which Registrar of Companies was informed about the transfer of shares in Sudipti, DLF Home Developers and DLF Estates. DLF is also required to furnish a copy of it’s annual accounts and I-T returns for 2006-07, 2007-08 and 2011-12.

The market regulator is probing if DLF made all disclosures as required at the time of an Initial Public Offer (IPO). Summons were issued by SEBI the September 17, 2012 and a reminder letter was sent on the October 22, 2012

In a statement to CNBC-TV18 DLF has said, "Yes, we have received summons from SEBI. The case was sub-judice and the Hon’ble HC has passed the order only yesterday. We are yet to receive the copy of the order. The case pertains to whether a 30 odd Cr police complaint should have been disclosed in the DRHP in 2006-07 even though
the complaint was against a erstwhile step down subsidiary. DLF, adheres strictly to the compliance requirements of the regulators and shall continue to do so."