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July 13 To July 19, 2019 u Taxmann’s Corporate Professionals Today u Vol. 45 u 39Introduction
- SEBI initiated investigation on the basis of complaint
received from Quantum Securities Pvt. Ltd. against the pro-
moters of New Delhi Television Limited (hereafter referred
to as ‘NDTV’). Under investigation, SEBI found that the
Holdings Pvt. Ltd., (hereinafter referred to as “RRPR”), Dr.
Prannoy Roy and Ms. Radhika Roy (hereinafter collectively
referred to as “Promoters of NDTV/Promoters”) had vio-
lated the provisions of section 12A (a), (b), (c) of the SEBI
Act read with Regulations 3(a), (b), (c), (d) and 4(1) of the
SEBI (Prohibition of Fraudulent and Unfair Trade Practices
relating to Securities Market) Regulations, 2003 (hereinafter
referred to as “PFUTP Regulations”). Further, the Promoter
of NDTV also violated clause 49(1)(D) of Equity Listing
Agreement, read with Section 21 of the Securities Contracts
(Regulation) Act, 1956 (hereinafter referred to as “SCRA”).
On the basis of the aforesaid violation recently, SEBI issued
the following directions under Sections 11B, 11(4), read with
Section 19 of the SEBI Act, 1992, namely :-
(i) The Promoters of NDTV restrained from accessing the
securities market and are further prohibited from buy-
ing, 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
(2) years. It is also clarified that during the said period
of restraint/prohibition, the existing holding, including
units of mutual funds, of the promoters of NDTV shall
remain frozen.
(ii) Dr. Prannoy Roy and Ms. Radhika Roy are restrained
from holding or occupying position as Director or any
NAGESH
RUDRAKANTHWAR
CS, LLB, MBA (Finance)
SEBI v. NDTV - Does financing
arrangements amounts to
exercising ‘control’