November 5, 2014 9:10 PM

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SAT allows DLF to redeem Rs.1,806 crore mutual funds

In a major interim relief to DLF, the Securities Appellate Tribunal (SAT) today allowed the realty giant to redeem mutual funds worth Rs 1,806 crore to meet working capital needs and service debt payments. The DLF had sought permission to redeem money locked in mutual funds after being slapped with market regulator SEBI's ban last month that barred it from accessing the capital market for 3 years. The final hearing in DLF's main appeal against the SEBI order would commence on December 10, prior to which regulatory body and the company will have to file their replies with Securities Appellate Tribunal (SAT).As an interim measure, SAT has allowed the company to redeem mutual funds worth Rs 767 crore in the current month and further funds worth Rs 1,039 crore in December. A three-member SAT bench said it can be reasonably concluded that the appellant-DEF should be allowed to use its own funds to meet its every day needs and other working capital requirements, including meeting its obligations to the creditors.

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