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Insider Trading: SEBI prohibits NDTV promoters, Prannoy and Radhika Roy from securities market

Nov. 28, 2020, 3:25 p.m.

New Delhi (Anish Yande): SEBI has confirmed allegations of Insider Trading against NDTV promoters Prannoy Roy and Radhika Roy. The regulatory body has barred Prannoy and Radhika Roy from the securities market for two years for insider trading. They have also been directed to gains deemed illegal by SEBI, which amount to more than Rs 16.97 crore.  

SEBI has directed all individuals and entities under action to disgorge illegal gains. These gains are to be paid jointly with 6% interest per annum. The regulating authority has prohibited these entities and individuals from participating in the securities market for two years.

SEBI’s Case Against NDTV Promoters:

According to SEBI, the NDTV promoters violated the Prohibition of Insider Regulations. SEBI has barred Prannoy Roy and Radhika Roy for insider trading in the securities market 12 years ago.

For the period that SEBI is investigating, Prannoy Roy was the chairman and whole-time director at NDTV.  Radhika Roy was the managing director at NDTV.  

According to SEBI, Prannoy Roy and Radhika Roy were in possession of  Unpublished Price Sensitive Information (UPSI). 

They participated in discussions relevant to the reorganization of the company, which commenced on Sept 7, 2007. The disclosure period for this reorganization was April 16, 2008. Meanwhile, Prannoy Roy and Radhika Roy sold off their shares on April 17, 2008. According to SEBI’s order, they made a profit of Rs 16.97 crore. 

Sanjay Dutt among other Individuals Facing SEBI’s Action:

SEBI’s Report states that Sanjay Dutt’s wife Prenita Dutt and entities connected to Dutt also made unlawful gains during this period. The entities connected to Dutt, such as SAL Real Estate Pvt Ltd, Taj Capital Partners Pvt Ltd, and Quantum Securities Pvt Ltd, along with Dutt’s wife, Prenita Dutt, had details of UPSI. They are reported to have made unlawful gains of Rs. 2.2 crore. 

According to SEBI, Vikramaditya Chandra, the executive director and group CEO of NDTV, during the period under the SEBI investigation, made illegal profits of Rs 6.67 lakh. Ishwari Prasad Bajpai, who was the previous NDTV senior advisor-editorial and projects, made unlawful gains of Rs 8.82 lakh. 

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