Lawstreet Journal

NDTV Promoters Prannoy Roy & Radhika Roy Guilty of Insider Trading by SEBI; Asked to Pay Rs. 16.97 Crore plus Interest in 45 days [Read Order]

Lawstreet Journal 30 Nov 2020 10:56pm

Image courtesy: Lawstreet Journal Business NDTV Promoters Prannoy Roy & Radhika Roy Guilty of Insider Trading by SEBI; Asked to Pay Rs. 16.97 Crore plus Interest in 45 days [Read Order]

On November 27, 2020, the Securities and Exchange Board of India (SEBI) restrained Prannoy Roy & Radhika Roy from accessing the securities market for two years for making a wrongful gain of ₹16.97 crores by trading in the shares of NDTV based on insider information.

The two were asked to jointly or severally, disgorge the amount of wrongful gain of ₹16,97,38,335/- as computed in the show cause notice served to them along with interest at the rate of 6% per annum from April 17, 2008.

The board explicitly 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.

The 90-page order passed by Whole Time Member S K Mohanty of SEBI stated as following: "The insider information is available to the insiders on account of their important corporate hierarchical position. Any fiduciary holds a position in trust for others. If the persons like the Noticees, who are obligated to observe fiduciary duties while exercising their powers fail to do so and instead use their position to their own advantage pecuniary or otherwise, it constitutes a fraud perpetrated on the common shareholders whose trust reposed in them has been blatantly breached. It is, therefore, of paramount importance that trading by the insiders is monitored and regulated, especially when they are in possession of UPSI (Unpublished Price Sensitive Information). Wherever such trading results in the accrual of unlawful gain, such insiders are required to forgo… Continue Reading...

Tagged: Prannoy Roy   Radhika Roy   NDTV  
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