India's capital market regulator, the Securities Exchange Board of India (SEBI) has said that it will begin investigations into the allegations made against the real estate giant, DLF Ltd.

It has been alleged that the DLF had violated certain provisions of disclosure and investor protection rules at the time of its Initial Public Offering (IPO) in 2007. The investigations follow a complaint by Kimsuk Krishna Sinha, who alleges that Sudipti Estates Pvt is linked to DLF and has duped him of about 340 million rupees.

DLF has said that the company is not associated with Sudipti. Both DLF and Mr. Sinha have not commented on the matter. Mr. Sinha had approached the Delhi High Court, which issued an order asking SEBI to begin investigations into the matter.

The regulator has said in a statement that an officer will begin investigations into the matter soon. SEBI member Prashant Saran said in the statement that, "If any violations are brought out in the investigation, the Securities and Exchange Board of India shall proceed in accordance with law."

The shares of the company fall over 2 per cent following the announcement by SEBI that it will investigate the allegations levied against the company.