Supreme Court tells SEBI to not take coercive action against NDTV promoters Prannoy Roy, Radhika Roy

The Supreme Court on Friday told the markets regulator, Securities and Exchange Board of India, to not take any coercive action against NDTV promoters Prannoy Roy and Radhika Roy till it hears their pleas, scheduled for on 3 September. Both Prannoy Roy and his wife Radhika have moved the Supreme Court challenging the penalty imposed by the SEBI for alleged violation of securities norms by concealing information from shareholders on certain loan agreements.

According to news agency PTI, a bench headed by Chief Justice NV Ramana was requested by the SEBI that the hearing on the pleas of the NDTV promoters be adjourned till next Friday.

The Bench, also comprising Justices Surya Kant and Aniruddha Bose told Solicitor General Tushar Mehta, “We will adjourn, but do not take any coercive step, the bench, which also comprised.”

Mehta was appearing for the SEBI in the matter.

The SEBI had imposed a fine of Rs 27 crore in December last year on Roys for violating securities norms.

Last year, the SEBI had banned Prannoy Roy and his wife Radhika Roy from the share market for two years. The SEBI had 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.

In 2019, 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.

Leave a Comment