The SAT has concluded that the information said to have been possessed by the Roys when they traded in the NDTV shares was not price sensitive, contrary to the SEBI’s findings on this aspect.
In a recent development , the Securities Appellate Tribunal (SAT) has overturned the Securities and Exchange Board of India’s (SEBI) 2020 ruling regarding alleged insider trading by former NDTV promoters, Dr. Prannoy Roy and Radhika Roy. The SEBI had found the Roys guilty of making illegal profits worth approximately ₹ 17 crores through insider trading of NDTV shares in 2007. However, the SAT concluded on October 5th that the shares traded by the Roys were not associated with Unpublished Price Sensitive Information (UPSI), contrary to the SEBI’s findings. As a result, the charge of insider trading could not be sustained.
Furthermore, the SAT also dismissed the SEBI’s accusation that the Roys had breached NDTV’s Code of Conduct. The ruling has also cleared Saurav Banerjee of insider trading. However, the trades executed by Vikramaditya Chandra and Ishwari Prasad Bajpai require reconsideration as they were tied to another piece of information known as PSI-3. Therefore, the matter has been sent back to the SEBI for reconsideration. It is worth noting that the PSI-6 information in question was not price-sensitive, according to the SAT’s ruling. This decision has significant implications for the Roys and their reputation, as well as for the Indian securities market.
Written by N.Yogendra Mani of KL University Vijayawada Andhra Pradesh ( 5th semester) an intern under Legal Vidhiya
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