NDTV drops after receiving show cause notice from Directorate of Enforcement

New Delhi Television fell 4.15% to Rs 84.35 at 14:15 IST on BSE after the company, its executives and NDTV Studios yesterday, 19 November 2015 received a show cause notice from the Directorate of Enforcement .

The company made announcement before market hours today, 20 November 2015.

Meanwhile, the S&P BSE Sensex was up 174.96 points or 0.68% at 26,013.36.

On BSE, so far 46,684 shares were traded in the counter as against average daily volume of 60,782 shares in the past one quarter.

The stock hit a high of Rs 88.80 and a low of Rs 82.20 so far during the day. The stock had hit a 52-week high of Rs 149.60 on 17 April 2015. The stock had hit a 52-week low of Rs 77.30 on 25 August 2015.

The stock had underperformed the market over the past one month till 19 November 2015, falling 17.25% compared with Sensex's 5.57% decline. The scrip had also underperformed the market in past one quarter, declining 21.85% as against Sensex's 7.48% fall.

The small-cap television broadcaster has equity capital of Rs 25.79 crore. Face value per share is Rs 4.

New Delhi Television (NDTV) said that the company alongwith Dr. Prannoy Roy, Executive Co-Chairperson, Mrs. Radhika Roy, Executive Co-chairperson, Mr. K.V.L. Narayan Rao, Executive Vice Chairperson and NDTV Studios (erstwhile subsidiary of the company since merged with the company) have yesterday, 19 November 2015 received a show cause notice from the Directorate of Enforcement as to why adjudication proceedings should not be held for alleged contraventions of provisions of Foreign Exchange Management Act,1999 (FEMA). The company has been advised that the allegations of the contraventions of provisions of FEMA in the show cause notice are not legally tenable and the company will reply to the same within due course of time.

Earlier, the company had clarified on 30 September 2015 that reports are false and baseless on certain tweets alleging receipt of show cause notice by Enforcement Directorate under the FEMA against the company.

On consolidated basis, NDTV reported a net loss of Rs 17.19 crore in Q2 September 2015, compared with net loss of Rs 26.89 crore in Q2 September 2014. Net sales rose 16.7% to Rs 127.35 crore in Q2 September 2015 over Q2 September 2014.

NDTV is one of the leading news broadcasters in India.

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