A few weeks ago, the market had celebrated DLF with its plans to monetize its rental properties. But SEBI seems to have popped its balloon – it has requested the Supreme Court (SC) to restrict DLF's fund-raising plan and also stop the company and its affiliates from dealing in securities in any manner till the outcome of a pending appeal in the court relating to non-disclosure of information during its 2007 IPO.

SEBI said in the petition to the SC, “f the proposed transactions (by DLF) are permitted to continue, cascading and multiple litigation may then have to ensue to undo these transactions. To avoid multiplicity of litigation and in public interest, the court is requested to pass appropriate directions in the pending case.”

It went on to add, “DLF and its affiliates should be restrained from dealing in any securities in any manner whatsoever during the pendency of the appeal. The court should at least consider directing that such transactions should be made subject to outcome of the present appeal.”

DLF was planning to raise around Rs.12,000 to Rs.14,000 crore from selling 40% of its stake in its subsidiary Cyber City Developers, which owns many of the company's rent-generating assets and a few land assets to institutional, third-party investors. Money raised was to be used to reduce debt. Now that plan stays suspended.

Naturally, DLF’s name figures out amongst the top losers of the day. Intra day the stock price slipped over 4% to Rs.129 and it is now 3% down at Rs.130 levels.