Markets regulator Sebi on Thursday imposed a total penalty of Rs 27 crore on NDTV promoters, Prannoy Roy and Radhika Roy, as well as on RRPR Holding for violating various securities norms by concealing information from shareholders regarding certain loan agreements. RRPR Holding is a promoter entity of New Delhi Television Ltd (NDTV). According to Sebi, certain loan agreements had clauses that have adversarial effect on the NDTV shareholders. The regulator said its probe began after receipt of complaints, in 2017 from Quantum Securities Pvt Ltd a shareholder of NDTV about an alleged violation of rules by non-disclosure of material information to the shareholders about loan agreements with VCPL.
NDTV Founders To Appeal SEBI Order On Alleged Change Of Control NDTV Founders To Appeal SEBI Order On Alleged Change Of Control
Updated: December 24, 2020 11:55 pm IST
Radhika and Prannoy Roy, the founders and promoters of NDTV, have repeatedly said that they have never directly or indirectly surrendered control of the Company to another individual or entity.
The SEBI order issued against them today (December 24), alleging they surrendered control of the Company, is based on an incorrect assessment of facts.
The core issue of the alleged surrender of control is pending adjudication at the Securities Appellate Tribunal, which, in 2019, granted a stay in favour of the founders of NDTV till the tribunal decides the matter.
One loan agreement was with ICICI Bank, and two were with Vishvapradhan Commercial Private Ltd (VCPL).
As per Sebi, an agreement was signed in 2009 with VCPL for a loan of Rs 350 crore to repay the ICICI Bank loan and a second loan agreement with VCPL was signed for Rs 53.85 crore, a year later.
These loan agreements included clauses and conditions that substantially affected the functioning of NDTV, Sebi said in its 52-page order.
Further, one of the terms of loan agreements allowed VCPL to indirectly acquire 30 per cent shareholding of NDTV through conversion of warrants into equity shares of RRPR Holding.
Sebi imposes Rs 27-cr fine on NDTV promoters Prannoy Roy and Radhika Roy for violating regulatory norms
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Sebi imposes Rs 27-cr fine on NDTV promoters Prannoy Roy and Radhika Roy for violating regulatory normsPTI
Last Updated: Dec 24, 2020, 09:56 PM IST
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RRPR Holding is a promoter entity of New Delhi Television Ltd (NDTV).
According to Sebi, certain loan agreements had clauses that have adversarial effect on the NDTV shareholders.
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Markets regulator Sebi on Thursday imposed a total penalty of Rs 27 crore on NDTV promoters, Prannoy Roy and Radhika Roy, as well as on RRPR Holding for violating various securities norms by concealing information from shareholders regarding certain loan agreements.
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