SEBI imposed Rs. 27 crore penalty on Prannoy Roy, Radhika Roy, RRPR Holding for concealing price-sensitive information from NDTV shareholders.
While Rs. 25 crores have been imposed jointly and severally on all three promoters, Rs. 1 crore each has to be paid separately by Prannoy and Radhika Roy.
The SEBI ruled that the Roys acted in violation of Section 12A of the SEBI Act and the relevant rules of SEBI (Prohibition of Fraudulent Trade Practices relating to Securities Market) Regulations, 2003 (PFUTP Regulations) by failing to disclose information relating to three loan agreements entered into by them with Vishvapradhan Commercial Private Limited (VCPL) and ICICI bank.
RRPR Holdings had entered into a loan agreement with ICICI in October 2008. It had entered into two loan agreements with VCPL in 2009 and 2010 for borrowing Rs. 350 crores and Rs. 50 crores respectively.
SEBI held that the ICICI loan agreement and two VCPL loan agreements contained clauses and conditions which substantially affected the functioning of NDTV.
Additionally it noted that the VPCL loan agreements also warranted transfer of shares of NDTV by the promoters which was carried out off market by way of various inter se bulk transactions.
“Consequently, information about the said agreements and off-market transactions were essentially material, price sensitive information which would have influenced decision of investors about trading in shares of NDTV,” SEBI concluded.
