Prannoy and Radhika Roy, the husband-wife duo and promoters of a leading news channel NDTV, have been found guilt of insider trading in the stock market. The Securities and Exchange Board of India (SEBI) has barred both of them for two years and directed them to return illegal gains worth nearly ₹17 crore made from trading in the shares of NDTV.
The case pertains to insider trading done by the duo in 2008. The final amount with 6 per cent simple annual interest since April 2008 may come to ₹28-₹30 crore.
Besides, SEBI has also barred seven individuals and entities for insider trading in the shares of NDTV for a period varying from one to two years. Some of them have been asked to disgorge illegal gains made from trading in the shares when they were in possession of Unpublished Price Sensitive Information (UPSI).
Prannoy Roy was the Managing Director/Promoter and Radhika Roy was the Chairman/Promoter of NDTV during the period when they held UPSI. Both purchased 48.35 lakh shares of NDTV while in possession of UPSI and sold those shares within 24 hours of public disclosure of the UPSI to the stock exchanges, SEBI found.
SEBI had conducted a probe in the dealing of NDTV shares by the Roys between September 2006 and June 2008, where they were found to have violated various provisions of insider trading norms. The final orders were passed by SEBI late on Friday evening.
SEBI also found that Prenita Dutt, Quantum Securities Private Limited, SAL Real Estate Private Limited, Taj Capital Partners Private Limited made wrongful gains of ₹2.2 crore by trading in NDTV shares and have asked them to return this money with 6 percent interest since April 2008.
Also, all of these entities have been banned from the markets for two years. Quantum Securities is a leading financial and share market advisor.