SEBI bans NDTV's Prannoy Roy and Radhika Roy from the market for 2 years
The Securities and Exchange Board of India (SEBI) banned NDTV's (New Delhi Television Ltd) Chairman Prannoy Roy and Managing Director Radhika Roy from the securities market for two years and even retrained them from holding any key managerial positions and directorship in the company for two years.
SEBI has directed them to disgorge illegal gains of more than Rs 16.97 crore for indulging in insider trading over 12 years ago.
SEBI has also taken action against seven other individuals and entities by banning them for insider trading in the shares of the media company for a period varying from one to two years.
SEBI has issued three orders totally, the first one was on Prannoy Roy and Radhika Roy. The second one was on Mr Sanjay Dutt, Mrs Prenita Dutt, Quantum Securities Private Limited, SAL Real Estate Private Limited, Taj Capital Partners Private Limited.
The third order was issued on Mr Vikramadiya Chandra, Mr Ishwari Prasad Bajpai, Mr Saurav Banerjee.
Some of them have been asked to disgorge illegal gain made from insider trading in the shares with a full penalty when they were in possession of Unpublished Price Sensitive Information (UPSI).
NDTV was reorganising company starting from Sept 7, 2007, till April 16, 2008, this reorganising period is called UPSI period. This is the time when the company goes with a lot of changes and all the changes information will be with the chairman or any management team. So at this time, it will be against the SEBI rules and regulation to buy and sell shares.
Soon after the reorganising happened in the company Prannoy Roy and Radhika Roy sold shares on April 17, 2008, when the trading window for them was closed and made a profit of Rs. 16.97 crore according to SEBI order.
NDTV in a statement on Saturday said Sebi's order against its founders Prannoy Roy and Radhika Roy is based on, An inaccurate assessment of facts and that the company will immediately appeal against it.
What is Insider Trading?
Suppose you are a company owner and your company is in the security market. You will be knowing all information regarding when you will profit when you will be going under loss. Knowing this inside information you start buy and sell in stock which will be illegal as per SEBI's rules and regulation.
0 Comments