Mumbai : Market regulator Securities and Exchange Board of India (SEBI) has issued show-cause notices to media firm NDTV Ltd., for alleged violation of takeover norms with respect to timely disclosure of some share transactions of its promoters.
The company informed the same to BSE on Tuesday stating that “The company and its promoters have, on 13th June 2016, received SCNs issued by SEBI with regard to certain non-compliances related to delay/non-filing of disclosures in the previous years under SEBI takeover Regulations,”
“They are of the opinion that the alleged non-compliances referred in Show Cause Notices (SCN) are technical/ procedural in nature and it is seeking legal advice to take appropriate action in the said matter” NDTV said in a regulatory filing to BSE.
According to the copy of the notice issued by SEBI, which was also filed by the company with the stock exchange, the watchdog examined certain “non-compliances” by NDTV and “prima-facie” found it to have violated certain provisions of the SEBI Act and the Takeover Regulations of SEBI.
Intimating about its decision to initiate adjudicating proceedings for the alleged violation, SEBI further said the company should file an application within two months in case it wants to avail a settlement of the proceedings.
SEBI probe followed a complaint filed in May 2015 by Quantum Securities, alleging multiple disclosure violations by NDTV, its promoters and major shareholders.
With respect to allegations regarding disclosure violations, SEBI sought details from stock exchanges — BSE and NSE.
Citing information available with stock exchanges, SEBI said non-compliance with regulations in respect of certain transactions have been observed. These include sale of shares by General Atlantic to promoters, acquisition of shares by Indiabulls Financial Services and shares purchased by promoters.
Besides, in certain instances, the company made delayed disclosures, according to the SEBI notice.
