SAT allows DLF to redeem Rs1,806 cr of its mutual fund investments

Real estate major DLF, which was hit hard by a Sebi order banning the company and its six directors from the capital market for a period of three years, today got some relief with the Securities Appellate Tribunal (SAT) allowing it to redeem mutual fund investments to the tune of Rs1,806 crore (around $294 million).

The tribunal, after hearing an appeal for interim relief by DLF, allowed the company to redeem mutual funds worth Rs767 crore in the current month and further funds worth Rs1,039 crore in December.

DLF, which is sitting on a Rs20,000-crore debt pile had moved SAT after the Securities and Exchange Board of India (Sebi) last month barred the company and six of its directors from capital market for three years over suspected disclosure violations in its 2007 initial public offer.

DLF, which has contested the Sebi ban on its market entry, had requested SAT that it may be allowed to liquidate its mutual fund investments to meet cash requirements as the appeals process continued.

DLF had said it needed to service debt worth Rs767 crore in November and Rs1,039 crore in December.

SAT, which is due to hold its next hearing on 10 December, had asked Sebi to file its reply to the DLF petition by 30 November while directing the petitioner to submit its rejoinder by 8 December and posted the matter for final hearing on 10 December.