The Securities and Exchange Board of India has banned NDTV promoters including Prannoy Roy and his wife Radhika Roy from the securities market for two years. The SEBI also directed them to ‘disgorge illegal gains of more than Rs 16.97 crore for indulging in insider trading more than 12 years ago.’ The NDTV has issued a statement saying that it will file an appeal against the order.
Its statement read, “The lawyers led by Fereshte Sethna, Senior Partner at DMD Advocates, who represent NDTV founders Radhika and Prannoy Roy, say that the SEBI order on “insider trading” is based on an inaccurate assessment of facts and will not withstand scrutiny in appeal. The appeal will be filed immediately. The SEBI order also names and fines three former senior NDTV executives including its former CEO and CFO.”
According to news agency PTI, the SEBI has also barred seven individuals and entities for insider trading in the shares of the company for a period varying from one to two years.
Prannoy Roy and Radhika Roy allegedly sold shares on 17 April, 2008, when the trading window for them was closed and made a profit of Rs 16,97,38,335. This, according to the PTI report, violated PIT norms and also acted in contravention of NDTV’s code of conduct for prevention of insider trading which prohibited them from trading at least till 24 hours after the information was disclosed to the stock exchanges.
Last year, the Securities Appellate Tribunal had upheld the SEBI’s decision to impose Rs 2 crore fine for not making a full disclosure about tax demand of Rs 450 crore. The SAT had also justified the SEBI’s decision to impose Rs 19 lakh penalty imposed by Sebi on the channel and three officials including promoters Pranoy Roy and his wife Radhika Roy.