DLF plunges 20% as SC issues notice on non-disclosure

Shares of real estate major DLFNSE -12.59 %plunged 20 per cent in Thursday’s amid reports that Supreme Court has issued a notice to DLF and market regulator Sebi on non-disclosure of key information in QIP.

According to a report, a petition was filed in SC highlighting how DLF suppressed key information regarding judicial proceedings against its largest chunk of land-bank in Haryana. SC has now issued a notice to the developer and Sebi, which too is party to the case.

The scrip fell 19.72 per cent to hit a fresh 52-week low of Rs 137.75 on BSE.

Analyst noted the petitioner is the same who had earlier filed case with Sebi that had led to ban on promoters from market for three years and a fine of Rs 10 lakh. That regulatory action was taken due to DLF management’s failure to disclose material information to investors during the firm’s maiden equity offer in 2007.

“It is a negative development for the company, which might lead to bigger penalty along with further legal inquiry, instead of small penalty, which imposed by Sebi in the past,” said Sameer Kalra, Founder & President (Research) at Target Investing.

The expert has sell recommendation on the stock.

The news has come when DLF patriarch K P Singh has stepped down as whole-time director. The company had approved the reappointment of Singh as a whole-time director designated as Chairman for a period of five years with effect from October 1, 2018. However, the 88-year-old Singh during the AGM informed the shareholders that it might not be possible for him to continue as a Whole-time Director.

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