Regulator SEBI has barred NDTV promoters, Prannoy Roy and Radhika Roy, from the securities marketplace for two years and also directed them to disgorge illegal gains of much more than Rs 16.97 crore for indulging in insider trading much more than 12 years ago.
Besides, the watchdog has barred seven folks and entities for insider trading in the shares of the corporation for a period varying from one particular to two years. Also, some of them have been asked to disgorge illegal gains created from trading in the shares when they have been in possession of Unpublished Price Sensitive Information (UPSI).
The directions adhere to a probe performed by the markets regulator involving September 2006 and June 2008 wherein many violations of insider trading regulations have been identified.
The quantity has to be paid jointly or severally by them along with 6 per cent interest from April 17, 2008, till the date of actual payment.
All the entities have violated Prohibition of Insider Trading (PIT) Regulations, SEBI mentioned in 3 separate orders passed late on Friday.
SEBI noted that Prannoy Roy and Radhika Roy collectively created a acquire of Rs 16.97 crore although indulging in insider trading in the shares of New Delhi Television Ltd (NDTV) although in possession of UPSI relating to the proposed reorganization of the corporation.
Prannoy Roy was the chairman and complete-time director and Radhika Roy was the managing director through the period below investigation and was aspect of the selection-creating chain that had led to the crystallization of the UPSI.
Discussions pertaining to reorganisation of the corporation began on September 7, 2007, and the disclosure was created on April 16, 2008.
Hence, September 7, 2007, to April 16, 2008, was UPSI period.
Prannoy Roy and Radhika Roy sold shares on April 17, 2008, when the trading window for them was closed and created a profit of Rs 16,97,38,335.
By undertaking so, they violated PIT norms and also acted in contravention of NDTV’s code of conduct for prevention of insider trading which prohibited them from trading at least till 24 hours soon after the info was disclosed to the stock exchanges.
Roys have been restrained from accessing the securities marketplace for two years and directed to disgorge illegal gains along with 6 per cent interest per annum.
Vikramaditya Chandra, who was the group CEO and executive director through the relevant period, created a profit of Rs 6.67 lakh Ishwari Prasad Bajpai, who was senior advisor-editorial and projects, created an illegal acquire of Rs 8.82 lakh although director finance and group CFO Saurav Banerjee incurred a loss of Rs 47,000 although trading in NDTV’s scrip through the UPSI period.
The shares which have been sold through the UPSI period have been acquired by them pursuant to allotment below ESOPs.
SEBI has therefore directed disgorgement of respective illegal gains along with 6 per cent interest per annum and barred Chandra, Bajpai and Banerjee from accessing securities marketplace for one particular year.
Also, Sanjay Dutt’s wife Prenita Dutt and entities connected to him — Quantum Securities Pvt Ltd, SAL Real Estate Pvt Ltd and Taj Capital Partners Pvt Ltd — had created a wrongful acquire of Rs 2.2 crore by means of insider trading although in possession of UPSI.
Sanjay Dutt was an on-contact and in property advisor/group member of NDTV group the scope of his function incorporated duty and accountability for the corporate finance and strategic arranging function of the firm.
During the period of investigation, the firm had filed six rates sensitive info to exchanges.
He was in possession of or has had access to cost-sensitive info and had communicated the identical to his wife, Prenita Dutt, and entities connected to him — Quantum Securities, SAL Real Estate and Taj Capital Partners — which, in turn, traded in the shares of NDTV through the UPSI period and created illegal gains of Rs 2.2 crore.
Therefore, SEBI has directed disgorgement of the illegal gains which is to be paid by them jointly or severally along with 6 per cent interest and also barred all the entities such as Sanjay Dutt from accessing securities marketplace for two years.