Sebi fines NDTV, promoters for disclosure lapses

The Securities and Exchange Board of India (Sebi) has imposed a penalty of ~1 million on media firm NDTV and ~300,000 each on four individuals, including promoters Prannoy Roy and Radhika Roy, for certain disclosure lapses. The order follows a probe by Sebi into alleged delay in disclosure about a ~4.5 billion income tax demand and about the sale of some shares by a top company executive over four years ago. Sebi said it had also served notices on the company’s erstwhile executive vice-chairman

K V L Narayan Rao, but proceedings against him were stopped as he died late last year.

Capital markets watchdog Sebi has imposed a penalty of ~1 million on media firm NDTV and of ~300,000 each on four individuals, including promoters Prannoy Roy and Radhika Roy, for certain disclosure lapses.

The order follows a probe by the Securities and Exchange Board of India (Sebi) into alleged delay in disclosure of about ~4.5 billion income tax demand — subsequently challenged by NDTV, which has been in cross hairs of various agencies — and about sale of some shares by a top company executive over four years ago.

In its 23-page order dated March 16, Sebi imposed penalty of ~1 million on NDTV and ~300,000 each on Prannoy Roy, Radhika Roy, Vikramaditya Chandra (then group CEO) and Anoop Singh Juneja (compliance officer).

Sebi said it had also issued notices to the company’s erstwhile executive vice chairman K V L Narayan Rao, but proceedings against him have been abated due to his death last year.

“These people constitute the management of the company who are responsible for the day-to-day and overall operations of the company. Further, it is an admitted fact that the decision not to disclose the tax demand was a conscious decision taken by the management of NDTV,” the Sebi order said, while finding the four persons to have violated the listing agreement and therefore liable to a penalty.