NDTV to appeal on SEBI’s imposition of Rs.5 crore fine on it

NDTV has decided to appeal against the Securities and Exchange Board of India (SEBI) for having imposed a penalty of Rs. 5 crores on it.

Clarifying on its part, the channel has said that both Radhika and Prannoy Roy, who are its founders and promoters, continue to hold majority stake of 61.45 per cent of the paid up share capital of the company.

There has been no change in control through any arrangements or transactions with third parties. Any report or allegation to the contrary is baseless, it claimed. Therefore, the Company has decided to appeal urgently against the order dated 29 December.

It may be noted that the Securities and Exchange Board of India (SEBI) had imposed a penalty of Rs. 5 crore on the Company under Section 23E of the Securities Contracts (Regulation) Act, 1956 for alleged non-disclosure of the loan agreements entered into in 2009- 2010 by the founders with Vishvapradhan Commercial (VCPL).

NDTV was not a party to this arrangement and it disclosed these agreements in 2015 in response to media reports that speculated change in control.

The core issue of the alleged surrender of control to VCPL is pending adjudication at the Securities Appellate Tribunal which in 2019 granted a stay in favour of the founders of NDTV which is still in operation. The company has been advised by its lawyers that the SEBI order is inter alia based on an inaccurate assessment of facts and will not withstand scrutiny in appeal.