DLF gets a fine of Rs 10 lakh
Sebi imposed a penalty of Rs 10 lakh on realty major DLF for making wrong disclosures with regard to utilisation of funds raised through initial public offering.
The investigation was conducted by Sebi in the script of DLF for the period June-December, 2007 to ascertain any possible violation of the regulation. In the investigation it was found that the company had made wrong disclosures to stock exchanges regarding utilisation of IPO proceeds.
For the said quarter in its filing to exchanges 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 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.