'Board Made Error': Bombay HC Dismisses SEBI’s Orders Against NDTV
The Bench stated that the grounds provided for the condonation of delay applications filed by NDTV are insufficient.
Bringing relief to NDTV, the Bombay High Court on Wednesday, 4 September, has allowed a petition filed by New Delhi Television Limited and dismissed orders by the Security and Exchange Board of India (SEBI) rejecting NDTV's applications for alleged delay in filing settlement applications, according to LiveLaw.
This comes after SEBI initiated adjudication proceedings against the channel for reported violations of the Securities Contract (Regulation) Act, 1956.
A Bench comprising Justice Akil Kureshi and Justice SJ Kathawalla stated that the grounds provided for the condonation of delay applications filed by NDTV are insufficient.
“These grounds were summarily rejected by recording one-line reason that the panel of whole-time members did not find the reasons sufficient. In our opinion, the Board has committed a serious error,” said the Court. reported LiveLaw.
The Securities Appellate Tribunal (SAT) stayed SEBI's order banning NDTV's three promoters, Prannay Roy, Radhika Roy and their holding firm, from the capital markets for two years.
SEBI had decided to impose Rs 12 lakh penalty on the company for failing to make timely disclosures to the stock exchanges.
In June, SEBI passed the order, which restrained the two individuals from holding any board or top management role at the company for two years.
Earlier, Prannay Roy and Radhika Roy had issued a statement calling SEBI's decision 'outrageous' and said they will challenge the order in courts.
(With inputs from LiveLaw)
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