DLF Chairman and its few executives are banned from securities markets, after finding that the company is guilty of “active and deliberate suppression” of material information at the time of its public offer some 7 years back. “I find that the case of active and deliberate suppression of any material information so as to mislead and defraud the investors in the securities market in connection with the issue of shares of DLF in its IPO is clearly made out in this case,” SEBI’s Whole-Time Member Rajeev Agarwal said in his 43-page order.
DLF had raised Rs. 9,187 crore through its IPO in 2007 and misled the investors and violated DIP guidelines by “not disclosing material information in the Prospectus and actively concealing them from the prospective investors. The company and its top executives are found to have violated various regulations including Sebi’s Disclosure and Investor Protection (DIP) Guidelines and the PFUTP (Prevention of Fraudulent and Unfair Trade Practices) norms.