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.

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.

The Securities and Exchange Board of India’s (Sebi’s) order to bar property giant DLF and six of its top executives from market trading for three years could prove a big dampener for its business.

Experts say the market leader was already witnessing low sales in the residential segment compared to other developers. Sales were 25 per cent down in the April-June quarter at Rs 1,725 crore, against Rs 2,314 crore in the same quarter last year.

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.

Realty major DLF, engineering behemoth Larsen and Toubro (L&T) and FMCG (fast moving consumer goods) giant ITC are among the eight ‘conviction ideas’ of Goldman Sachs according to a September 2014 report.

Grasim Industries, IndusInd Bank, Petronet LNG, Voltas and Tech Mahindra are other stocks in this list, where the upside from closing price levels of September 4, 2014 over the next 12 months could range between 1.4 and 74.5 per cent, the report says.

DLF’s dream of building another luxury premium project near the Golf Course Road, Gurgaon, has been hit by a recent order of the Punjab and Haryana high court, setting aside the Haryana government’s allotment of 350 acres.

The land was acquired in an auction for Rs 1,750 crore in 2009-10. The allotment was challenged by farmers and a village panchayat in 2011. In 2012, the HC asked DLF not to carry out any construction or create third-party rights on the lot.

The Punjab and Haryana High Court on Wednesday set aside the Haryana government’s decision to allot 350 acres of land in Wazirabad, Gurgaon, to the country’s largest real estate developer DLF in 2010.

This the second blow to DLF in the past week. The Supreme Court had on August 27 directed the company to deposit Rs 630 crore in its registry within three months, rejecting its request to stay the order of the Competition Commission of India (CCI) that had imposed the penalty over unfair trade practices.

Consumer activism entered a new phase in working out claims and compensations. The latest example is of the Belaire project in Gurgaon, over which DLF, the country's largest real estate company, was recently told by the Supreme Court to pay Rs 630 crore for abusing its dominant market position.

Apartment owners at Belaire, in the process of selling their units are adding a clause in the sale deeds that if compensation is granted, they - not the buyers - will have the right to claim it.

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