The Securities Appellate Tribunal on Thursday asked DLF to file an affidavit by November 3, explaining why it wants to redeem investments in mutual funds and how much money it is planning to draw.

The real estate giant has investments worth Rs 2,500 crore in mutual funds. It has appealed to the Securities Appellate Tribunal (SAT) against a order of Securities and Exchange Board of India (Sebi) banning it from accessing the capital market for three years.

The Securities and Exchange Board of India (Sebi) has received complaints that PACL (Pearl Agrotech Corporation Limited) continues to collect money from investors, defying the market regulator’s ban.

The market regulator, also entrusted with the responsibility of cracking down on illicit money collection schemes, plans to issue an advisory, cautioning investors against investing in schemes offered by the Delhi-based company.

Hit hard by a Sebi order barring it from capital markets, realty giant DLF today appealed for an interim relief from the Securities Appellate Tribunal (SAT) to allow it to redeem thousands of crores worth funds locked in mutual funds and other securities.

After hearing the petition, filed by the country's largest real estate developer last week, the Tribunal adjourned the matter till October 30 next week, as it sought a response from capital markets regulator Sebi on DLF's plea.

The Securities and Exchange Board of India (Sebi) had changed its mind on the treatment of ICICI Bank shares that came into the accounts of promoter group entities of Bank of Rajasthan (BoR), led by Pravin Kumar Tayal, following the merger of the two entities in 2010.

In August 2010, it had taken a view that the merger would not affect the ban on the promoter group entities from the securities market. Nearly two years later, it said as the merger had been approved by the Reserve Bank of India (RBI), the promoters could be allowed to sell these shares.

Following the Securities and Exchange Board of India (Sebi) barring DLF’s promoters from capital markets, the company stock fell to its all-time low on Thursday. Subsequently, the shares gained, as traders recovered short positions.

On Thursday, the stock closed at Rs 110.35 on the BSE, up 5.2 per cent, after falling to Rs 100.1 in intra-day trade, down 4.6 per cent from its previous close. The BSE Sensex and the National Stock Exchange Nifty benchmarks closed down 1.3 per cent and 1.5 per cent, respectively.

Real estate major DLF's wait to cut its debt could get longer because of the recent order by the Securities and Exchange Board of India (Sebi) banning the former from capital markets for three years.

Early last year, DLF had said it would reduce debt, which at that time stood at Rs 21,000 crore, to Rs 10,000-11,000 crore. In May this year, the company said its plans to cut debt would be delayed by two years, owing to subdued market conditions.

Days after the Securities and Exchange Board of India, or Sebi, banned six executives of DLF, including Chairman KP Singh, from accessing the capital market for three years for withholding information from investors when the company went public in 2007, the industry is abuzz with talk that the realty giant is planning to sell assets, including projects under construction, to reduce debt. Those in the know say the inventory could be sold at a discount to generate quick cash to boost inflows.

In what could spell more trouble for DLF, the Securities and Exchange Board of India (Sebi) is planning to write to other regulatory bodies about the lapses at the real estate firm.

According to sources familiar with the development, Sebi has decided to make references to the Ministry of Corporate Affairs (MCA) and the Department of Revenue, citing violations of the Acts these bodies govern. The market regulator came across these violations while investigating the DLF case between December 2012 and May 2013.

The Securities and Exchange Board of India (Sebi) wants other financial sector regulators to emulate its investor awareness and education initiatives. At a recent meeting of the Financial Stability and Development Council, apex body for financial sector development and regulation, it expressed concern over the lack of initiatives from its counterparts in investor education, said sources.

Sebi is said to have told the others it had spent about Rs 40 crore on investor awareness programmes last year. And, that other regulatory bodies should begin spending more on this cause.

In a fresh list of terror outfits circulated by the Securities and Exchange Board of India (Sebi) to the stock exchanges, market entities have been asked to stay cautious about any funds or entities linked to the infamous ISIS (Islamic State in Iraq and Syria) finding their way to Indian capital markets.

While no instance of any ISIS-linked activities in the Indian markets has come to the fore so far, the regulator has informed the stock exchanges about the updated Al-Qaida sanctions list of the United Nations Security Council, which has named various ISIS-linked entities in its new list. The stock exchanges have, in turn, informed their trading members about the updated sanctions list.

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