ED issues notice to NDTV for alleged FEMA violation

NDTV said it had been advised that the allegations in the show cause notice were not legally tenable and it will reply to the same in due course of time

The Enforcement Directorate (ED) has issued a show-cause notice to private broadcaster NDTV about alleged violations of Foreign Exchange Management Act (FEMA).

The company, in a filing to the Bombay Stock Exchange, said it had on Thursday (November 19) received a show-cause notice in the name of Executive Co-Chairpersons Prannoy Roy and Radhika Roy as well as Executive Vice-Chairperson K V L Narayan Rao and NDTV Studios Ltd from the Directorate of Enforcement as to why adjudication proceedings should not be held for alleged contraventions of provisions of FEMA.

NDTV said it had been advised that the allegations of the contraventions of provisions of FEMA in the show cause notice were not legally tenable and it will reply to the same in due course of time.

NDTV had filed the notice during market hours, resulting in a sharp fall in its stock price by 7 percent. The stock which opened at Rs.87.35 on Friday morning fell sharply to Rs.82.40 before recovering to Rs.85.75, a decline of 2.56 percent.