MUMBAI: Market regulator Securities and Exchange Board of India (SEBI) has barred Prannoy Roy and Radhika Roy, promoters of NDTV, from accessing or associating with the securities market for two years and restrained them from holding any key managerial position at NDTV.
The order, passed by SEBI’s whole time director S K Mohanty, also said that their holdings, including units of mutual funds, shall remain frozen during the period of restraint imposed.
The SEBI order related to an investigation over complaints of non-disclosure of material information in loan documents entered into by the promoters, first with ICICI Bank, and then with Vishvapradhan Commercial Private Ltd. (VCPL).
Quantum Securities Pvt Ltd had filed a complaint with SEBI in 2017 alleging that the withholding of information was detrimental to the interests of the minority shareholders.
Investigations against the promoters were alleged to be in violation of SEBI’s Prohibition of Fraudulent Trade Practices, concealing material information relating to the ICICI and VCPL loan agreements from the knowledge of public shareholders of NDTV, while dealing the shares of the company.
The loan agreements had covenants that prevented the promoters from undertaking any merger, demerger,
consolidation, reorganisation or effect any reconstitution of NDTV without the prior written approval of the lenders.
However, in a statement posted on their website, NDTV 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 assessment and is a highly unusual and perverse direction.