The Securities Appellate Tribunal (SAT) Friday quashed Securities and Exchange Board of India's (Sebi) order against DLF's three-year ban from capital markets, stating that the market regulator is not justified in condemning the real estate developer in conducting its business. The ban has now been reduced to six months.
Speaking to CNBC-TV18, Rajeev Talwar, Group ED, DLF said the company is still studying the fine print of the order and will comment only after analysing it thoroughly. He further said the board will take a call on capital raising plans post legal advice from experts. He, however, remains unsure on when is the six month applicable from.
Below is verbatim transcript of the interview:
Q: A big relief coming in for DLF, what are your initial thoughts?
A: It is a big relief. The comments that are coming on CNBC-TV18 offer us great hope. We are still studying the order and will be able to comment only when we are done studying it. But we are grateful and always did express faith in the judicial system and will live by it.
Q: If there is no violation as this order has stated then some lawyers believe that the penalty that was imposed on you could be revoked as well. What is your view?
A: We will depend on legal advice for that.
Q: What happens with the Real Estate Investment Trust (REIT) listing because there was overhang because of this ban on possibility of the REITS listing? Now do you think it will go through smoothly and by when can we expect that?
A: We do have advice not only from legal quarters but will also be taking advice from the banking circle and the bankers that we have appointed. Only after studying the order will we make any future plans.
Q: Since there is a relief that has come through, there was this other issue of your compulsory convertible preference shares (CCPS) conversion in which economic interest of 40 percent was to be given to you in DLF Cyber city. Will that conversion come in April itself?
A: You are saying a big relief for the company we truly believe it is so. If the judicial authority has given a relief we are grateful and we express our faith once again. It is only what you said about CCPS or the REIT all these options have to be studied and then a decision will have to be taken by the board of directors (BOD).
Q: Since you have a favourable verdict from the SAT today would you look to challenge the monetary penalty of Rs 85 crore which was imposed on you last month because you have not done it so far?
A: You will also have to wait for the legal advice on this.
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