DLF : Equity down by 25%, Should home buyers and investors suffer?

Sebi’s decision in DLF case is unusually harsh because of the collateral fallout and possible disproportionately large cost to other stakeholders, especially people who have bought houses in DLF projects.

The market watchdog has punished the promoters and other decision-makers for inadequate disclosures made in the prospectus when the company made a public offer of shares in 2007, but should corporate entity DLF have also been punished.

The share price of the company reduced significantly by 25% due to this.