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NDTV tanks 8% after Sebi bars Prannoy, Radhika Roy from securities market

In response, founders of the NDTV group called the Sebi's order to debar them from holding any managerial position as "outrageous, bad in law and against all procedures"

SI Reporter  |  New Delhi 

NDTV tanks 8% after Sebi bars Prannoy, Radhika Roy from securities market

Shares of New Delhi Television (NDTV) skid 8 per cent to Rs 32.10 during the early morning trade on the BSE on Monday, after regulator the Securities and Exchange Board of India (Sebi) banned the group chairman and director Radhika Roy from accessing the capital market for two years. The stock of broadcasting & cable TV operator was trading close to its 52-week low of Rs 31.05 touched on July 24, 2018 on the BSE in intra-day trade.

It has also forbidden the two from holding any key managerial position after it found the duo guilty in Vishvapradhan Commercial Private Limited loan case.

At 10:20 am, the stock of the Delhi-based channel was trading at Rs 34.10 apiece, down 2.01 per cent, having recovered from an intra-day low of Rs 32.10 per share. In comparison, the S&P BSE Sensex was trading 0.55 per cent lower.

On June 14, issued a notice to Prannoy Roy, Radhika Roy and their firm RRPR Holdings Pvt Ltd stating that they have “violated” the provisions of the regulator “by omitting to disclose material information to the shareholders of in the VCPL case”.

“The way loan agreements have been used to deceitfully transfers shares of up to 30 per cent to VCPL without the knowledge of board or its shareholders, it can be held that the acts of the noticees (Prannoy Roy, Radhika Roy and their firm RRPR Holdings Pvt Ltd) are in stark violation of Regulation 4(1) of PFUTP Regulations, being unfair trade practices,” the order said. READ THE FULL ORDER HERE

"The promoters have informed the company that the said order is in relation to alleged non disclosure of the loan agreements entered into by the promoters and the promoter group with Vishvapradhan Commercial Private Limited and Limited," NDTV said in a regulatory filing.

The promoters have further informed the company that as per the advice received by them, the order has been passed on an inaccurate assessment of facts and is unlikely to sustain scrutiny in appeal. Therefore, the Promoters are in the process of challenging the said order in appeal before the honorable Securities Appellate Tribunal, it added.

First Published: Mon, June 17 2019. 10:16 IST
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