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Sebi slaps Rs 10 lakh fine on DLF for wrong disclosures on utilisation of IPO proceeds

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DLF

The regulator conducted an investigation in the scrip of DLF for the period June-December, 2007 to ascertain any possible violation of the regulation.

It found that the company had made wrong disclosures to stock exchanges regarding utilisation of IPO proceeds.

“I conclude that the noticee (DLF) by making wrong disclosures as regards variation in projected utilisation of funds vis-a-vis actual utilisation of funds for the quarter ended September 2007, had violated the provisions of … Listing Agreement,” Sebi Adjudicating Officer B J Dilip said in an 18-page order.

In its filing to exchanges for the said quarter, DLF said it had utilised an amount of Rs 3,143.56 crore towards prepayment of loans, up to September 30, 2007.

However, as per the filing for December quarter 2007, DLF had shown the utilisation of funds under the same head – prepayment of loans- as Rs 2,469.75 crore, which was decremental as compared to the previous quarter.

According to DLF, it had clubbed Rs 673.81 core from non-IPO proceeds with Rs 2,469.75 core of IPO proceeds towards prepayment of loans for the quarter ended September, 2007.

” I note from the subsequent filing for December 2007 quarter wherein the amount utilised towards prepayment of loans was rectified and shown as Rs 2,469.75 crore, there was no explanatory statement furnished by the noticee as to how the figures got decreased compared to the previous quarter,” the adjudicating officer noted.

According to Sebi norms, a company is required to make disclosures on a quarterly basis to stock exchanges indicating the variation between projected utilisation of funds and the actual utilisation of funds under the Listing Agreement.

Info- https://realty.economictimes.

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