SEBI issues show cause notice to NDTV promoters
MUMBAI: The Securities Exchange Board of India (SEBI) has issued showcause notice to NDTV promoters Prannoy and Radhika Roy under the SEBI Act 1992.
The show cause notice dated 31 August 2018 was issued under Sections 11(1), 11(4) and 113 of the SEBI Ac by SEBI, alleging violation of provisions of Section 12A (d) and (e) of SEBI Act read with Regulation 3(i) and Regulation 4 of SEBI (Prohibition of lnsider Trading) Regulations, 1992.
The SEBI act in Section 12 A deals with insider trading – buying or selling of a security by someone who has access to material nonpublic information about the security. Insider trading can be illegal or legal depending on when the insider makes the trade. It is illegal when the material information is still nonpublic.
Section 12A (d) deals with the engagement of insider trading and Section 12 A (e) deals with a deal in securities while in possession of material or non-public information. It also deals with the communication of such material or non-public information to any other person, in a manner which is in contravention of the provisions of the SEBI Act.
Previously NDTV had received show cause notice from the Income Tax Department pertaining to the IT Department levying a penalty of Rs. 436.80 crores for the assessment year 2009-10.
The channel had later approached the Delhi High Court which had refused to intervene in the matter and in turn asked the channel to approach the Commissioner of Income Tax (Appeals). In the end, the channel had to pay 30% of the penalty amount in a staggered manner by 15th June 2018.
The said three installments of this amount had to be paid on 15 April, 15 May and 15 June respectively.