Securities and Exchange Board of India (SEBI) on Friday barred NDTV Ltd’s 2 top board members and key promoters— Prannoy Roy, Radhika Roy, and their firm RRPR Holding Pvt Ltd from the capital markets for next 2 years. In the order, SEBI restricted the Roy couple from holding any top management role in the company during the suspension period. The order has been passed for alleged violation of insider trading regulations.
The order means that Roys now are not eligible to buy or sell securities, and cannot remain associated with the securities market directly or indirectly for the next 2 years. The regulator also added that both of them can not hold top management role at any company registered with SEBI.
According to the last shareholding data, Prannoy Roy has 15.94 % shares in NDTV, while his wife Radhika Roy held 16.33 % share.
The reports say that SEBI has conducted a probe in the financial matter from October 14, 2008, to November 22, 2017, which is allegedly violated the takeover norms by VCPL through a 10-year loan ending July 2019, with various clauses that gave it control for up to 52 percent of the media firm.
Following the orders from SEBI, Radhika and Prannoy Roy released their statements and called the directions outrageous. In the statement, they said that SEBI order asking them to step down as directors and to not hold any management positions in NDTV is outrageous, bad in law and against all procedures.
They added that the order contains false decisions on issues that were not even mentioned in the show cause notice and will challenge the SEBI orders in the court.