India markets regulator dismisses 2018 case of inadequate disclosures against NDTV

A microphone of New Delhi Television (NDTV) is placed on a tripod along a roadside in New Delhi, India, August 26, 2022. (Photo: Reuters)

MUMBAI, May 29 (Reuters) – India’s markets regulator on Friday disposed of proceedings against NDTV (​New Delhi Television Ltd) ruling ‌that the company did not violate disclosure rules.

Here are the key details:

  • In 2009, ​NDTV’s founders entered into a ​loan agreement that gave the lender ⁠options to acquire a significant ​stake in the broadcaster.
  • In June 2018, ​the Securities and Exchange Board of India (SEBI) had held that the agreement resulted in ​a change in control.
  • SEBI began ​disclosure violation proceedings since NDTV did not disclose ‌the ⁠SEBI finding to stock exchanges.
  • The Securities Appellate Tribunal (SAT) set aside SEBI’s ruling in 2022, holding that the ​agreement did ​not ⁠amount to a change in control as the options ​were not exercised.
  • In its order ​on ⁠Friday, SEBI noted that since there was no change in control, ⁠no ​disclosure obligation arose, and ​therefore no violation of listing rules occurred.
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    T.K.B. Sen

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