These proceedings are on under the Sebi Act sections pertaining to penalty for fraudulent and unfair trade practices (FUTP) and where there is no provision of a separate penalty.

According to sources, these 40 entities are likely to include the promoter, key management personnel, intermediaries and entities connected with the subsidiaries — Sudipti, Shalika and Felicite — that were part of Sebi’s October 13 order.

In response to a query from Business Standard, a spokesperson for DLF said: “The showcause notice dated August 28, 2013, was issued under Sections 15HA and 15HB of the Sebi Act, 1992, and under Rule 4 of the Sebi (procedure for holding inquiry and imposing penalties by adjudicating officer) rules, 1995. The hearing on the showcause notice issued under Section 15 of the Sebi Act has been completed. The Company has filed its written submissions.”

In its result in November, DLF disclosed Sebi proceedings and stated the order was awaited.

“According to regulations, the adjudicating order needs to be passed within four months of the order that found the parties guilty of violating securities laws. Currently, the regulator is trying to ascertain what is the loss caused to investors in the matter and a penalty would be based on that. It could be three times the loss caused or ~25 crore, whichever is higher,” said a source.

The market regulator had in October passed an order to bar the real estate company and six other individuals from accessing capital markets for three years, as DLF had failed to provide key information on subsidiaries and pending legal cases at the time of its record-breaking 2007 IPO, which raised over ~9,187 crore.