Sebi bars NDTV promoters, others in insider trading case; company to appeal
New Delhi: Sebi has barred NDTV promoters Prannoy Roy and Radhika Roy from the securities market for two years and also directed them to disgorge illegal gains of over Rs 16.97 crore for indulging in insider trading more than 12 years ago, while the company denied the charges saying it will immediately appeal against the ruling.
Besides, the market watchdog has barred seven individuals and entities for insider trading in the shares of the company for a period varying from one to two years. Also, some of them have been asked to disgorge illegal gains made from trading in the shares when they were in possession of Unpublished Price Sensitive Information (UPSI).
NDTV in a statement on Saturday said Sebi's order against its founders Prannoy Roy and Radhika Roy is based on an inaccurate assessment of facts and that the company will immediately appeal against it.
It further said that the Sebi's ruling will not withstand scrutiny in appeal. "The appeal will be filed immediately," the statement said. The statement was issued by the lawyers led by Fereshte Sethna, Senior Partner at DMD Advocates, who represent NDTV founders Radhika Roy and Prannoy Roy.
The Sebi directions follow a probe conducted by the markets regulator between September 2006 and June 2008 wherein various violations of insider trading regulations were found.