Mumbai: NDTV promoters Prannoy Roy and Radhika Roy Were barred by Market regulator SEBI from accessing the securities market for two years.
The order comes after it found both Pranoy and Radhika guilty of not disclosing information to the stock market about the loan agreements they entered into. It has also restrained them from holding or occupying any key managerial position in NDTV for two years or in any other listed company for one year.
The order prompts Prannoy and Radhika to step down from their current positions in NDTV and cannot involve in buying, selling or deal in the securities market for two years and all the existing shares they may hold, including all units of mutual funds will be frozen.These directions come into forcwith immediate effect.
SEBI was hearing a representation made by Quantum Securities, which is a shareholder in the TV channel NDTV. In 2017, Quantum Securities filed a complaint with SEBI alleging that RRPR Holdings Pvt Ltd, Prannoy and Radhika Roy, who are the three promoters of NDTV, violated the provisions of the SEBI Act, 1992 by not disclosing information to the shareholders about loan agreements entered into by them with Vishvapradhan Commercial Private Limited.
According to SEBI, the investigation revealed that Prannoy and Radhika entered into a corporate rupee term loan facility agreement with ICICI bank in 2009, which was not disclosed by them to either the stock market or the shareholders of the company.
SEBI’s investigation also found that Radhika and Pronnoy also transferred shares of NDTV and in turn received shares from RRPR in the off-market.