New Delhi | The Securities and Exchange Board of India (SEBI) Friday banned New Delhi Television Ltd (NDTV) Ltd Chairman Prannoy Roy and Managing Director Radhika Roy from the securities market for two years.
SEBI has also barred them from holding any managerial position in any listed company for two years.
The Roys have allegedly concealed material information from shareholders while entering into loan agreements between 2008 and 2010.
As per information available on the BSE, Prannoy Roy is currently the executive director — chairperson of the listed media entity while Radhika Roy is an executive director.
In an order, Sebi said they failed “to conform to the fair and transparent principles of trades in the securities market” in a case relating to transfer of NDTV shares.
The Roys will have to step down with immediate effect.
“The way loan agreements have been used to deceitfully transfers shares of NDTV up to 30 per cent to Vishvapradhan Commercial Private Limited (VCPL) without the knowledge of NDTV board or its shareholders, it can be held that the acts of the noticees (Prannoy Roy, Radhika Roy and their firm RRPR Holdings Pvt Ltd) are in stark violation of Regulation 4(1) of PFUTP Regulations, being unfair trade practices,” the order said.
“… the Noticee no. 2 (Mr. Roy) and 3 (Ms. Roy) had this avowed duty to act in a fair and transparent manner to protect the interest of their minority shareholders and not to indulge in any fraudulent activity or any activity detrimental to the interest of the shareholders of NDTV,” the order also read.
Radhika and Prannoy Roy have claimed that the statement was based on “an incorrect assessment and is a highly unusual and perverse direction”.
“The SEBI order delves into and presents conclusions on issues that were not raised in the show cause notice,” said the statement.
They also said they will take legal action in a few days.
The market regulator banned Prannoy Roy, Radhika Roy and RRPR Holdings from accessing the securities market and prohibited them from buying, selling or otherwise dealing in securities, directly or indirectly, for two years.
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