Wednesday, January 27, 2021
Home News Reports Prannoy Roy, Radhika Roy, Vikram Chandra, others barred from capital market for insider trading...

Prannoy Roy, Radhika Roy, Vikram Chandra, others barred from capital market for insider trading of NDTV shares: Read details

Apart from Prannoy Roy and Radhika Roy, former NDTV CEO Vikramaditya Chandra, senior advisor Ishwari Prasad Bajpai, group CFO Saurav Banerjee, advisor Sanjay Dutt, his wife Prenita Dutt, and three companies linked to Dutt also have been found guilty of insider trading in NDTV shares

In a big blow to controversial media network NDTV, India’s capital market regulator Securities and Exchange Board of India (SEBI) has found its promoters Prannoy Roy and Radhika Roy guilty of making undue gain from insider trading. As a penalty for the financial crime, SEBI has barred them from trading in the securities market for two years, and directed them to return the illegal gain of Rs 16.97 crore they had made from the insider trading more than 12 years ago.

Apart from Pranoy Roy and Radhika Roy, former NDTV CEO Vikramaditya Chandra, senior advisor Ishwari Prasad Bajpai, group CFO Saurav Banerjee also have been found guilty of insider trading.

According to an investigation conducted by SEBI, Pranoy Roy and his wife Radhika Roy have violated the Prohibition of Insider Trading (PIT) Regulations. They are accused of possessing Unpublished Price Sensitive Information (UPSI) during 2007-2008 relating to discussion on reorganisation of New Delhi Television Ltd.

The discussion pertained to the restructuring of NDTV into news-related businesses and investments beyond the news business in the year 2008. According to SEBI, the promoters of the company had traded shares of the company while in possession of price-sensitive and unpublished information related to restructuring of NDTV.

The investigation pertained to a period of almost two years, divided in two parts, the period from 31 July 2016 to 7 September 2007 was Price Sensitive Information (PSI) period, while from 7 September 2007 to 16 April 2008 was Unpublished Price Sensitive Information (UPSI). During PSI, price sensitive information is disclosed to stock exchanges, while during UPSI it is not disclosed.

The UPSI period was from 7 September 2007 to 16 April 2008, and the Roys had sold shares of the company on 17th April 2008, making a profit of Rs 16,97,38,335. This was violation of PIT Regulations, as people holding UPSI are prohibited from trading in shares before the expiry of 24 hours from disclosing the information to stock exchanges. They had also bought shares on December 26, 2007, during the UPSI period.

They had bought 48,35,850 NDTV shares on December 26, 2007 at the rate of ₹400per share. On April 17, 2008, they sold 49,13,676 shares at the rate of ₹435.10per share. Therefore, they made a gain of ₹16,97,38,335 on the 48,35,850 shares bought during the UPSI period.

This was not only violation of PIT regulations, but also a violation of NDTV’s own ‘Code of conduct for Prevention of Insider Trading’. As per the clause 3.2.2 and clause3.2.4 of the Model Code specified in the Schedule I of the PIT Regulations, 1992, when trading window is closed, employees/ directors shall not trade in company’s shares and the trading window shall be opened 24 hours after the UPSI was made public.

As NDTV had disclosed the information about the discussion on restructuring on 16 April 2008, the trading window was closed up to 17 April. But Pranoy Roy and Radhika Roy sold shares during this closed window period, thereby the gain of Rs ₹16.97 crore they made is considered illegal as law.

Part of SEBI order

Now they will have to disgorge the gain amount, either jointly or individually, along with 6% interest per annum.

Other than Pranoy Roy and Radhika Roy, several other officials are also found guilty of insider trading by SEBI. They are, Mr. Vikramaditya Chandra, Group Chief Executive Officer & Executive Director at that time, Mr. Ishwari Prasad Bajpai, Senior Advisor, Editorial and Projects and Mr. Saurav Banerjee, Director Finance & Group Chief Financial Officer. Although they didn’t purchase any NDTV shares during the probe period, there were issued ESOPs during the period when they were holding PSI and UPSI. All three had sold shares during these periods, making them guilty of insider trading.

SEBI has found that Vikramaditya Chandra made an illegal gain of ₹ 6,67,385, Ishwari Prasad Bajpai gained ₹ 882,780, and Saurav Banerjee lost ₹47,000 from selling shares during the restricted period.

Accordingly, Chandra and Bajpai have been asked to disgorge the illegal gain amount along with 6% interest. Along with that, all three has been barred from trading in the securities market for a period of one year.

In the third order issued by SEBI, NDTV advisor Sanjay Dutt, his wife Prenita Dutt, and three entities linked to him have also been found guilty. The three firms are, Quantum Securities Private Limited, SAL Real Estate Private Limited and Taj Capital Partners Private Limited. Both the Dutts and the three companies have NDTV shares, and they also had traded in the shares during the restricted period. They also have been ordered to disgorge the illegal gain amount totally ₹2.2 crore, and they have been barred from the capital markets for 2 years.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

 

Related Articles

Trending now

Nirbhaya protests, blaming the govt and other excuses: Here’s how liberals came out to defend the Red Fort siege and the accompanying violence

Left-leaning liberals went on an overdrive to defend the desecration of Red Fort by the tractor rally protesters.

Rajdeep Sardesai lies twice, says ‘farmer’ was killed because the police shot him in the head: Here is the truth

In this way, those who had shared the fake news once would live under the false impression that it was indeed a case of police firing.

Hindus must ask now if their religious flag atop Lal Quila would be an acceptable sight

A lasting visual from this Republic Day, would be one of the Sikh flag unfurled atop the Red Fort, by violent Khalistanis

After violence was unleashed on streets of Delhi on Republic Day, ‘farmer’ body thanks ‘farmers’ for ‘unprecedented participation’

Samyukta Kisan Morcha further claimed that despite their efforts, 'some organisations and individuals' violated route and indulged in condemnable acts.

‘Flag of Khalistan is waving on Red Fort,’ ‘Historic Moment’: All Pakistan Muslim League celebrates “Black Day” for India

The All Pakistan Muslim League (APML) is celebrating the hoisting of the 'Khalistan Flag' at Red Fort on Republic Day.

During Delhi Riots, NDTV cropped stones from rooftop of mosques, now it paints violent mobs in tractor rally as humanitarian

NDTV tried to downplay the chaos by claiming that protesters made way for an ambulance that was stuck in Tractor Rally

Recently Popular

Protesting mob enters Red Fort, unfurl the Sikh flag, Terrorist outfit SFJ had demanded Khalistani flag to be hoisted: Details

The protestors have hoisted the flag on Red Fort that appears to be the Sikh Flag. Some believe it is the Khalistan Flag.

Professor who translated Rahul Gandhi’s “don’t need army if farmers are strong” speech in Erode faints after the speech: Reports

Muhammed Imran, who translated Rahul Gandhi's speech at Erode, collapsed after interpreting the speech from English to Tamil

‘Flag of Khalistan is waving on Red Fort,’ ‘Historic Moment’: All Pakistan Muslim League celebrates “Black Day” for India

The All Pakistan Muslim League (APML) is celebrating the hoisting of the 'Khalistan Flag' at Red Fort on Republic Day.

Here is how Congress and trolls tried to paint a Khalistani accused of spearheading the Red Fort siege as a ‘sanghi’

Deep Sidhu is accused of being responsible for the hoisting of the Sikh flag at Red Fort on Republic Day.

Is it actor Prosenjit Chatterjee in the portrait of Netaji Subhash Chandra Bose inaugurated by President Kovind? A fact check

It was claimed that it was actor Prosenjit Chatterjee in the portrait of Netaji Subhash Chandra Bose inaugurated by President Kovind.

Protesting ‘farmer’ spends Rs 35 lakh to modify his tractor for Republic Day rally

The modified tractor is fitted with huge wheels. It is said to withstand heavy rain and water cannon charge.
- Advertisement -

 

Nirbhaya protests, blaming the govt and other excuses: Here’s how liberals came out to defend the Red Fort siege and the accompanying violence

Left-leaning liberals went on an overdrive to defend the desecration of Red Fort by the tractor rally protesters.

Hundreds of children, artists for Republic Day were stuck at Red Fort crying, terrified by the mob: Reports

Around 200 artists of Republic Day parade were stranded since 12:00 PM near Red Fort. They were rescued by Delhi Police.

Here is how the Uttarakhand Youth Congress celebrated the Red Fort siege, incited violence by spreading fake news about protester death

The Uttarakhand Youth Congress shared a photograph from the Red Fort earlier today after the protesting mob breached its premises.

Here is how Congress and trolls tried to paint a Khalistani accused of spearheading the Red Fort siege as a ‘sanghi’

Deep Sidhu is accused of being responsible for the hoisting of the Sikh flag at Red Fort on Republic Day.

Rajdeep Sardesai lies twice, says ‘farmer’ was killed because the police shot him in the head: Here is the truth

In this way, those who had shared the fake news once would live under the false impression that it was indeed a case of police firing.

Tractor rally: Violence by the mob in Delhi leaves 83 policemen injured, attempt made to mow down Additional DCP with tractor

The tractor rally by farmers and Khalistanis in Delhi where they unleashed violence has left 18 policemen injured

Watch: Protestors throw away Tricolour, place Sikh flag on top of flag pole at Red Fort

Disturbing visuals emerge from the tractor rally on Republic Day.

Rahul Gandhi and CPIM use Republic Day insurrection to further their political agenda, demand repeal of farm laws

Sitaram Yechury and Rahul Gandhi are attempting to use the Republic Day violence to further the political agenda of their party.

Tractor rally on R-Day: Not just swords, violent protestors have come loaded with liquor too

Earlier, some violent protestors were seen attacking Delhi Police personnel with swords and trying to run them over with tractors.

Hindus must ask now if their religious flag atop Lal Quila would be an acceptable sight

A lasting visual from this Republic Day, would be one of the Sikh flag unfurled atop the Red Fort, by violent Khalistanis

Connect with us

245,563FansLike
496,912FollowersFollow
23,000SubscribersSubscribe