Security Exchange Board of India (SEBI) on Friday barred NDTV Ltd's three key promoters - Prannoy Roy, Radhika Roy and their holding firm RRPR Holdings Pvt Ltd from accessing the security markets for two years.
It also restrained Prannoy and Radhika from holding any board or top management role at the company in this period.
"Noticee no. 1, 2 (Prannoy Roy) and 3 (Radhika Roy) are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner, whatsoever, for a period of two years. It is also clarified that during the said period of restraint/prohibition, the existing holding, including units of mutual funds, of the Noticees shall remain frozen," SEBI's whole time member S K Mohanty said.
Reacting to the development, the Roy couple said, "Radhika and Prannoy Roy, the promoters of NDTV, believe the SEBI order asking them to step down as directors and to not hold any management positions in NDTV, is based on an incorrect and highly unusual assessment. They will take urgent legal action as advised within the next few days."
The SEBI order comes after it received complaints in 2017 from Quantum Securities Pvt. Ltd., a shareholder of NDTV, alleging that RRPR Holdings Pvt. Ltd, Prannoy Roy and Radhika Roy have violated the provisions of SEBI Act, 1992 by omitting to disclose material information to the shareholders of NDTV about loan agreements entered into by them with Vishvapradhan Commercial Private Limited.
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