sebi:EAD-7/BJD/NJMR/82/2018-19
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Facts / Headnote
Penalty of Rs. 10,00,000 imposed on DLF Ltd. under Section 23H of SCRA for violation of Clause 43 of Listing Agreement read with Section 21 of SCRA
Provisions invoked
- s. 15
- s. 61
- s. 21
- s. 23
- s. 23H
- s. 23J
- s. 23I
Parties
- DLF Ltd.
Holding
DLF Ltd. violated Clause 43 of the Listing Agreement read with Section 21 of SCRA by making wrong disclosure of utilization of IPO proceeds towards prepayment of loans for the quarter ended September 30, 2007. The Adjudicating Officer imposed a monetary penalty of Rs. 10,00,000 under Section 23H of SCRA.
Full text
Adjudication Order in the matter of DLF Ltd., Page 2 of 18 shareholders approval in terms of Section 61 of the Companies Act. The expenditure towards prepayment of loans was revised to ` 2576.97 crores as against ` 1,928.10 crores, which resulted into variation of projected utilization of funds vis-à-vis the actual utilization of funds. Accordingly, DLF was required to make disclosures on a quarterly basis to the Stock Exchanges indicating the variation between projected utilization of funds and the actual utilization of funds, under clause 43 of the Listing Agreement
Adjudication Order in the matter of DLF Ltd., Page 3 of 18 SHOW CAUSE NOTICE, REPLY AND HEARING 4. A Show Cause Notice (hereinafter referred to as “SCN”) bearing ref. no. EAD/BJD/NJMR/1823/2018 dated January 18, 2018 was issued to the Noticee, under Rule 4 of SCR Rules to show cause as to why an inquiry be not held against it in terms of Rule 4 of the SCR Rules and penalty be not imposed under Section 23H of SCRA for the violation alleged to have been committed by it.
Adjudication Order in the matter of DLF Ltd., Page 4 of 18 Company Secretary and Mr. Rajiv Goel, Sr., Vice President (Finance & Investor Relations) along with the AR on April 27, 2018 and reiterated the submissions made by the Noticee vide its letter dated March 15, 2018.
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Source: SecMarx — sebi:EAD-7/BJD/NJMR/82/2018-19. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.