The Securities Appellate Tribunal (SAT) on Wednesday allowed DLF, the home-grown real estate major, to redeem Rs 1,806 crore ($293.96 million) in mutual fund investments, as the property developer continues to contest a regulatory ban on raising funds from capital markets.
DLF is in the midst of appealing a Securities and Exchange Board of India (Sebi) ruling in October that had barred the realty firm and some of its executives from capital markets for three years over suspected disclosure violations in its record-breaking initial public offering in 2007.
Debt-laden DLF has contested the decision to appellate body SAT and had requested permission to liquidate its mutual fund investments to meet cash requirements as the appeals process continues.
The property developer had said it needed to service debt worth Rs 767 crore in November and Rs 1,039 crore in December.
The appellate body is due to hold its next hearing on December 10 when the arguments in the appeal against the ban by capital market watchdog Sebi will resume.