The Securities Appellate Tribunal (SAT) on Tuesday stayed an order passed by market regulator Securities and Exchange Board of India (Sebi) barring New Delhi Television (NDTV) promoters Prannoy Roy and Radhika Roy from holding managerial positions at news television network.
“Such orders prima facie would not be in the interest of the shareholders of NDTV or for that matter the investors at this stage,” SAT said in an order adding that the company “cannot remain headless.”
Coming down heavily on the Sebi for not giving a copy of the ban-order, issued last Friday to the Roys and the company after so many days having elapsed, SAT asked the markets watchdog to ensure that its orders are served to the aggrieved party first.
The tribunal gave Sebi six weeks to file its replies and three weeks to the appellants thereafter to file their rejoinders and listed the matter for hearing on September 16. Restraining the Roys from occupying position as a director of NDTV will be prima facie not in the best “interest of the shareholders of the company or for that matter the investors at this stage”, the SAT said on the appeal by the Roys and their holding company RRPR Holdings.
“Therefore, we stay the effect and operation of the impugned order till the next date of hearing. However, the appellants (Roys) shall not alienate or create any encumbrance on their shareholding in NDTV till further orders,” a SAT bench comprising presiding officer Tarun Agarwala, along with member CKG Nair and judicial member MT Joshi, said.
Sebi had barred Prannoy and Radhika Roy and RRPR Holdings–from the markets for two years and also restrained the Roys from holding any board/top management positions in the firm during this period. —WITH PTI
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