SEBI bars Prannoy Roy, Radhika Roy from holding management positions in NDTV for 2 yrs
NDTV promoters also barred from accessing securities market for 2 years. Radhika and Prannoy Roy call the order “outrageous, bad in law and against all procedures”
The Securities and Exchange Board of India (SEBI) has barred Radhika and Prannoy Roy, the founders of NDTV, from holding any management position in the network for two years. Also, the promoters of NDTV have been barred from accessing the securities market for two years.
The action has been taken for alleged violation of insider trading regulations. According to SEBI, there has been violations of the provisions of Section 12A (a), (b), (c) of SEBI Act read with Regulations 3 (a), (b), (c), (d) and 4 (1) of SEBI (Prohibition of Fraudulent Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) by concealing material information relating to some loan agreements.
Earlier show-case notices, dated March 14, 2018, were sent to the three promoters-- Prannoy Roy, Radhika Roy and RRPR Holdings Pvt. Ltd.-- in the case. The enquiry was conducted by SEBI after received complaints dated August 26, 2017, December 26, 2017 and a representation dated October 24, 2017 from Quantum Securities Pvt. Ltd., a shareholder of NDTV. The complaints alleged that RRPR Holdings Pvt. Ltd., Prannoy Roy and Radhika Roy, who are promoters as well as directors of NDTV, have violated the provisions of Securities and Exchange Board of India Act, 1992 and the rules and regulations made thereunder by omitting to disclose material information to the shareholders of NDTV about loan agreements entered into by them.
Reacting to SEBI order, Radhika and Prannoy Roy said they believe that the SEBI order asking them to step down as directors and to not hold any management positions in NDTV is “outrageous, bad in law and against all procedures.”
“It is, for example, unheard of that the order contains false decisions on issues that were not even mentioned in the show cause notice. They will challenge the SEBI order in the courts as advised within the next few days,” mentioned a statement issued by them.
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