The trouble for NDTV founders Prannoy Roy and his wife, Radhika Roy, is only increasing with every passing day. In a new development, the Securities Appellate Tribunal (SAT) has directed the two to deposit 50 per cent of the disgorged amount, earned fraudulently through insider trading of NDTV shares, before market regulator SEBI within four weeks.
It furthered that if NDTV deposits the said amount within the stipulated time, the media network would not be required to make the payment of the balance amount during the pendency of the appeal before SAT. According to SEBI orders, the total amount that couple needs to shelf out, either jointly or individually, amounts to Rs 16.97 crore along with 6% interest per annum.
The tribunal, in two separate orders passed on January 4, noted that the appeals filed by the Roy couple needed consideration and directed the appeals to be listed before the tribunal for final disposal on February 10, 2021.
SEBI forbids Prannoy Roy and Radhika Roy from trading in the securities market for two years
It is pertinent to note here that NDTV founders Prannoy Roy and his wife, Radhika Roy had filed an appeal against a SEBI order passed in November, barring the couple 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.
According to an investigation conducted by SEBI, the two 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 They are accused of possessing Unpublished Price Sensitive Information (UPSI) during 2007-2008 relating to discussion on reorganization of New Delhi Television Ltd.
NDTV involved in fraud to a tune of Rs 16 crores
The duo had reportedly 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.
Besides the duo, India’s capital market regulator Securities and Exchange Board of India (SEBI) has also found the media network’s CEO Vikramaditya Chandra, senior advisor Ishwari Prasad Bajpai, group CFO Saurav Banerjee guilty of making undue gain from insider trading.