The Securities and Exchange Board of India (SEBI) has issued an order which bars NDTV promoters Prannoy Roy and Radhika Roy from any sort of dealing in the securities market for a two-year period, reports The News Minute.
Both of them are also prohibited from taking up any managerial or key position in NDTV during the said time frame, nor in any other listed firm for one year. Existing securities owned by the two will also remain frozen during the two-year period.
The order comes following a SEBI investigation into allegations made by Quantum Securities, a shareholder in NDTV, that the company did not disclose to the stock exchange or its shareholders a corporate rupee term loan facility agreement it had entered into with ICICI Bank in 2009.
“In view of the observations and findings recorded..., it can be deduced that Noticee no. 2 (Prannoy Roy) and 3 (Radhika Roy) have failed to comply with all applicable laws and have also engaged in a conduct which is not honest and ethical and not free from fraud or deception, as required under the Code of Conduct of the NDTV,” the SEBI order states.
Prannoy Roy and Radhika Roy came out with their own statement in response to the order and said that it was “outrageous, bad in law and against all procedures”. The two are planning to initiate a legal challenge against the order.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.