Prannoy Roy and Radhika Roy, founder-promoters of NDTV, have been directed by the Securities Appellate Tribunal (SAT) to deposit 50 per cent of the amount that the market regulator SEBI had asked them to pay up. SAT will then hear their appeal against the SEBI order, and the recovery of the balance amount will be kept pending till the time the SAT issues its final order.
The Roys’ had appealed against a SEBI order that had accused them of insider trading and barred them from the market for two years. SEBI had also directed them to pay up or disgorge illegal gains worth ₹16.97 crore for indulging in insider trading some 12 years ago.
SAT will decide on the Roys’ appeal by February 10.
Prannoy was the Chairman and Whole-time Director and Radhika was the Managing Director during the period under investigation and were part of the decision-making chain that had led to crystallisation of unpublished price-sensitive information (UPSI).
Discussions pertaining to reorganisation of the company started on September 7, 2007, and the disclosure was made on April 16, 2008. Hence, September 7, 2007, to April 16, 2008 was UPSI. The couple sold shares on April 17, 2008, when the trading window for them was closed, and made a profit of ₹16.97 crore, as per the SEBI order.
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