NDTV to move SC as SAT upholds penalty for disclosure lapses
MUMBAI: The Securities Appellate Tribunal (SAT) has upheld the SEBI’s decision to impose Rs 2 crore penalty on Prannoy Roy’s NDTV in a case of disclosure lapses regarding tax demand of Rs 450 crore.
The tribunal also upheld Rs 19 lakh penalty imposed by SEBI on the company as well as three officials including promoters Pranoy Roy and Radhika Roy.
The SAT ruled that Rs 2 lakh fine imposed on the firm’s compliance officer, Anoop Singh Juneja, for violating listing agreement was unjustified.
According to the SAT order, Juneja was liable to pay a fine of Rs 1 lakh for violating norms pertaining to code of corporate disclosures practices under the Insider Trading norms.
In a regulatory filing, the company said that NDTV, Prannoy Roy and Radhika Roy are proposing to exercise the statutory right to file appeals to the Supreme Court.
Regarding disclosures, “NDTV has asserted that in view expert tax lawyer’s advice to the effect that the tax assessment order (Rs 450 crore) dated 21 February 2014 was untenable, it was entitled to defer disclosure to the BSE and NSE,” it added.
The tribunal’s ruling came on appeals filed by NDTV against SEBI’s orders passed in June 2015 and March 2018 in a case pertaining to the firm making delayed disclosure to exchanges regarding tax demand of Rs 450 crore raised by Income Tax Department and sale of some shares by a top company executive.