Appeal Against SEBI Order- NDTV Promoters To Deposit 50% Of The Amount To SEBI Within 4 Weeks: Securities Appellate Tribunal
A bench of the Securities Appellate Tribunal, Mumbai comprising of Justice Tarun Agarwala (Presiding Officer), Dr. CKG Nair (Member) and Justice MT Joshi (Judicial Member) in two similar orders directed the two NDTV promoters, Prannoy Roy and Radhika Roy to deposit 50% of the disgorged amount before the Securities Exchange Board of India within four weeks. The SAT was hearing...
A bench of the Securities Appellate Tribunal, Mumbai comprising of Justice Tarun Agarwala (Presiding Officer), Dr. CKG Nair (Member) and Justice MT Joshi (Judicial Member) in two similar orders directed the two NDTV promoters, Prannoy Roy and Radhika Roy to deposit 50% of the disgorged amount before the Securities Exchange Board of India within four weeks.
The SAT was hearing two appeals preferred by the two promoters after they were restrained by SEBI fromaccessing the securities market for 2 years for having made undue gains of Rs. 16.97 crores in November last year.
BACKGROUND OF THE CASE
NDTV promoters Prannoy Roy and Radhika Roy had preferred an appeal against the impugned order passed by S.K. Mohanty, Whole Time Member of SEBI dated 27.11.2020 wherein they were restrained by the Board from accessing the securities market for 2 years on the ground of making undue gains of over Rs. 16.97 crores by way of committing insider trading in transactions between December 2007 and April 2008.
The SEBI also prohibited them from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner, whatsoever, for a period of 2 years.
They had earlier defended their actions by stating that they attributed full knowledge of all their trades to SEBI and the stock exchanges and that none of their legal advisor firms ever alerted them on possible infraction of the Prevention of Insider Trading Regulations, 1992, in respect of any of these transactions.
The primary contentions raised by both the appellants in the appeal are:
- Whether there has been an undue delay in the initiation of the proceedings when the transactions were made on the platform of the stock exchange?
- Whether the valuation pertaining to the reorganization of the company as disclosed on April 16, 2008 which amounts to a deemed price sensitive information under Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992?
Senior Adv. Janak Dwarkadas and Adv. Fereshte Sethna were appearing on behalf of the appellants in the matter.
OBSERVATION OF THE BENCH
The Bench while dealing with the appeals directed both Prannoy Roy and Radhika Roy to deposit 50% of the disgorged amount before the Securities Exchange Board of India, the respondent in the case, within four weeks.
"If the said amount is deposited the balance amount shall not be recovered during the pendency of the appeal. The amount so deposited would be kept in an interest bearing account and would be subject to the result of the appeal." The order said.
Furthermore, the Tribunal also directed the respondent SEBI to file a reply within three weeks whereas a rejoinder may be filed within a week thereafter.
The matter shall be heard for final disposal on February 10, 2021.
Case Name: Dr. Prannoy Roy v. SEBI & Ors. Misc. Application No. 576 of 2020 and Appeal No. 557 of 2020
Next date of hearing: 10th February 2021
Click here to read/download the order