SC Seeks Sebi's Reply On NDTV Promoters' Plea Against Levy Of Penalty
The Supreme Court on Friday asked the SEBI to file its reply on NDTV promoters' Prannoy Roy and Radhika Roy's plea seeking penalty proceeding be kept in abeyance in connection with its alleged violation of securities norms by concealing information from shareholders on some loan agreements.
Senior advocate Mukul Rohatgi, appearing for the Roys, submitted before a bench headed by Chief Justice N.V. Ramana that the third member of the Securities Appellate Tribunal (SAT) is not there, therefore and the hearing on the appeals is stuck.
He added that proceedings to levy the penalty has been initiated and the appeals have to be decided without charging the penalty at this stage.
Solicitor General Tushar Mehta, appearing for the SEBI, argued that this is misleading petition and penalty proceedings are different.
"This is an MA (miscellaneous application) filed in a disposed of matter... it is a question of law," he said.
He also submitted that the capital markets regulator will not take any coercive action against the promoters in the meantime.
At this, the bench told Mehta: "You want to initiate penalty proceedings without deciding the main issue...... We will hear it in a day and decide."
Mehta said that a response to their pleas may be filed in two weeks.
The Roys have contended that SEBI order imposing the penalty be kept in abeyance till the SAT decides their appeals.
On August 27, the Supreme Court had asked the SEBI not to take any coercive steps against the Roys, till it hears their pleas on September 3 challenging penalty proceedings in connection with the alleged violation of securities norms by concealing information from shareholders on certain loan agreements.
In February, the Supreme Court directed the SAT to hear Roy's appeals against the orders of the SEBI without the pre-condition of depositing half of the fines.
The top court had said: "Appeals are to be heard on March 4. No amount shall be recovered coercively in absence of any deposit for hearing the appeals." However, it emphasised that this order shall not be treated as a precedent.
The SAT had directed the NDTV promoters to deposit 50 per cent of the disgorged amount before the SEBI. The market regulator had imposed this penalty in the view of alleged violation of various securities norms, where information was concealed from shareholders in connection with certain loan agreements. The SAT had also noted that if NDTV were to deposit the amount, the balance would not be recovered during the pendency of the appeal before the tribunal.
The tribunal in two separate orders passed on January 4, agreed to examine the appeals filed by Roys. The couple had filed appeals against the SEBI November order, which barred them from the securities market for two years and also directed them to disgorge illegal gains of Rs 16.97 crore for indulging in insider trading more than 12 years ago. The news channel has denied these charges.
--IANS
ss/vd
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
Titi Coles Legacy In Finance: Pioneering Diversity And Leadership
Titi Cole, one of the most senior Black women in the world of finance, recently exited her high-profile role at Citi. He... Read more
Rising Rates, Rising Challenges: Bankers Adapt To Serve Troubled Companies In A Changing Economic Landscape
As interest rates climb, troubled companies are facing heightened financial pressures, prompting them to seek assistance... Read more
The Elusive Nature Of Fraud Detection: Exploring The Auditor's Dilemma
In the intricate world of financial reporting, auditors serve as guardians of integrity, tasked with uncovering discrepa... Read more
The Battle For Depositors: US Lenders Ramp Up Efforts Amidst Rate Uncertainty
In the competitive landscape of the US banking sector, retaining depositors is paramount for lenders seeking to maintain... Read more
Beyond Capital: Unveiling The Complexities Of Bank Failure Prediction
In the realm of banking, the ability to predict and prevent failures is paramount for financial stability and consumer c... Read more
Central Banks And The Economic Horizon: Steering Through Uncertaintie
In the evolving landscape of global financial markets, the strategic role of central banks has come under intense scruti... Read more