Sebi has imposed ban on realty heavyweight company DLF from securities markets for three years for active and deliberate suppression of material information at the time of its public offer.
Sebi banned six top executives including Chairman K P Singh from the markets including Singh's son Rajiv Singh (Vice Chairman) and daughter Pia Singh (Whole Time Director). As per the order, those facing the ban include T C Goyal (Managing Director), Kameshwar Swarup and Ramesh Sanka.
DLF had raised Rs 9,187 crore through its IPO in 2007. Sebi said in the order that the company and its top executives are found to have violated various regulations. All of these persons, including K P Singh and his two children, were part of the top management at the time of filing IPO documents. About G S Talwar, (non-executive director at that time) has been given "benefit of doubt".
Sebi's Member Rajeev Agarwal said in his order that, 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.
This is big news and it will impact entire Realty sector and stock negatively. Big giants like HDIL, IBREALEST & UNITECH may continue southward journey. Investors should to stay away from these sectors as of now. Suggest target stock price- Its bit difficult to say how big the correction would be, but we are expecting at least 7%-10% downside in Stock. While on daily chart DLF has a strong support of 120, one can expect deep correction if it break the major support of 120.
- Mr. Vivek Gupta
CMT – Director Research, CapitalVia Global Research