SAT overturns SEBI's order against NDTV promoters in insider trading case
Sebi had imposed a two-year ban on Prannoy and Radhika Roy, restraining them from accessing capital markets
The Securities Appellate Tribunal (SAT) has reportedly quashed Sebi insider trading orders against Prannoy and Radhika Roy, the former promoters of NDTV. The market regulator had barred the Roys from the market for two years over allegedly violating the provisions of insider trading.
Reports say that the tribunal dismissed the order, stating that the information scrutinised by SEBI was not price-sensitive, and the Roys were not insiders. SAT reportedly said that the Roys received pre-trade clearance from NDTV's compliance officer, which was acknowledged in the show cause notice. Therefore, the trades executed by the Roys were in line with NDTV's Code of Conduct and PIT Regulations.
The Roys were investigated in two separate cases by Sebi in November 2020: one in the case of a loan taken by the NDTV promoters from Vishvapradhan Commercial Pvt. Ltd and the other of insider trading.
Sebi had imposed a two-year ban on the promoters, restraining them from accessing capital markets. It also ordered to disgorge the amount of more than Rs 16 crore gained allegedly from insider trading in NDTV shares.
In July of 2023, SAT overruled the ban in the loan case, saying that the findings and directions were not sustainable.
Sebi alleged that the Roys bought 8,35,850 shares of NDTV on 26 December 2007, for Rs 19,34,34,000, thereby violating the provisions of insider trading.
In March 2023, Adani Enterprises' RRPR Holdings acquired an additional 1.76 crore shares in NDTV for Rs 602 crore from the Roys, amounting to 27.26% of the company. The Group owns 64.71% of NDTV after buying Roy’s stake.
