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NDTV shares fall 7.7% after Sebi bars promoters Prannoy, Radhika Roy from securities market

NDTV share price fell in trade today after Securities and Exchange Board of India (SEBI) barred Prannoy Roy and Radhika Roy, promoters of New Delhi Television Limited (NDTV), from holding or occupying any position as Director or key Managerial Personnel in the company  for two years and one year for holding any managerial personnel in any other listed company.

twitter-logo BusinessToday.In        Last Updated: June 17, 2019  | 15:52 IST
NDTV shares fall 7.7% after Sebi bars promoters Prannoy, Radhika Roy from securities market
The share price is trading lower than 5, 20, 50, 100 and 200 day moving average.

NDTV share price fell in trade today after Securities and Exchange Board of India (SEBI) barred Prannoy Roy and Radhika Roy, promoters of New Delhi Television Limited (NDTV), from holding or occupying any position as Director or key Managerial Personnel in the company  for two years and one year for holding any managerial personnel in any other listed company.

The stock of NDTV fell 7.7% to the day's low of Rs 32.10, against the last closing of Rs 34.80 on BSE, which is a mere 1.05 points away from the stock's 52-week low of Rs 31.05.

On NSE, the stock of the listed media entity opened at the day's low of Rs 33.25 against the previous close of Rs 34.80 and is trading mere 2.85 points away from 52-week low of Rs 30.40, last recorded on October 8, 2018.

The share price is trading lower than 5, 20, 50, 100 and 200 day moving average.

"Dr.Prannoy Roy and Mrs. Radhika Roy, are restrained from accessing the securities market and were further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly or being associated with the securities market in any manner, for a period of two years," the company said in the filing, posted on Friday, after trading hours.

As per the filing, the said order is in relation to alleged non-disclosure of the loan agreements entered into by the Promoters and the Promoter Group with Vishvapradhan Commercial Private Limited and ICICI Bank Limited.

After a complaint in 2017 wherein it was alleged that the three entities concealed material information from shareholders while entering into loan agreements with ICICI Bank and Vishvapradhan Commercial Pvt. Ltd. (VCPL), SEBI has initiate dthe investigation on this matter.

"The loan agreements were unmistakably structured as a scheme to defraud the investors by camouflaging the information about the adversarial terms and conditions impinging upon the interest of NDTV's shareholders, thereby inducing innocent investors to continue to trade in the shares of NDTV oblivious to such adversarial developments in the shareholding of NDTV," added the SEBI order.

As per the promoters, the order has been passed on an inaccurate assessment of facts and is unlikely to sustain scrutiny in appeal.

"Therefore, the Promoters have informed the firm that they are in the process of challenging the said order in appeal before the Honorable Securities Appellate Tribunal," the filing by the company on the BSE added.

As per information available on BSE, Mr. Roy, who is currently the executive director - chairperson of NDTV holds a stake of 15.94% in the company, while Ms. Roy- an executive director, holds about 16.32%.

(Edited by Rupa Burman Roy)

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