Supreme Court allows DLF units to sell shares, rejects Sebi plea for restraint order

NEW DELHI: The Supreme Court today allowed three DLF subsidiaries to sell shares worth Rs 12,000 crore to reduce debt, declining the regulator's plea to prevent the real estate group's move. The DLF stock was up 3.9 per cent at 11:24 am on the Bombay Stock Exchange.

The Securities and Exchange Board of India ( Sebi) had previously passed an order restraining DLF and its key directors including promoter KP Singh from directly or indirectly accessing the market or dealing with any securities over what it said was the violation of disclosure norms during the company's initial public offer in 2007.

The securities appellate tribunal had set aside this order on an appeal by DLF. Sebi has challenged this in the top court.

On Wednesday, the market regulator, through senior advocate CU Singh, sought a temporary restraint order against the DLF units selling their shares to offshore entities, but a bench of justices Jasti Chelameswar and Abhay Manohar Sapre refused to consider this.

Instead, the bench directed the Sebi appeal to be listed for hearing.