Order in the matter of New Delhi Television Limited - Mr. Prannoy Roy and Mrs. Radhika Roy

BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA
CORAM: S. K. MOHANTY, WHOLE TIME MEMBER

ORDER

UNDER SECTIONS 11(1), 11(4) AND 11B OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992.

IN THE MATTER OF NEW DELHI TELEVISION LIMITED.

1. Securities and Exchange Board of India (hereinafter referred to as “SEBI”) had received certain complaints from New Delhi Television Limited (hereinafter referred to as “NDTV”) on July 16, 2013 (1st complaint), December 27, 2013 (2nd complaint) and January 9, 2014 (3rd complaint) inter alia alleging that Mr. Sanjay Dutt and certain other entities, viz. Quantum Securities Private Limited (hereinafter referred to as “QSPL”) and SAL Real Estates Private Limited (hereinafter referred to as “SREPL”) were involved in dealing in securities of NDTV in violation of provisions of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as “the PIT Regulations, 1992”) during the period September 2006 to June 2008.

2. Pursuant to the receipt of the complaints from NDTV, SEBI conducted an investigation into the suspected insider trading in the scrip of NDTV (hereinafter referred to as “the Company”) during the period starting from September 01, 2006 to June 30, 2008 (hereinafter referred to as “Investigation Period”). While the investigation conducted into the matter, inter alia, revealed that Mr. Sanjay Dutt and his associated entities had indulged in insider trading in the scrip of NDTV (for which separate proceedings have been initiated) at the same time, the investigation also concurrently detected that the two Noticees in the instant proceedings, namely, Mr. Prannoy Roy and Mrs. Radhika Roy have carried out insider trading in the scrip of NDTV during the Investigation Period. The findings arising from the investigation with respect to the two Noticees in the present proceedings have been highlighted hereunder:
 

(1) As per NDTV’s Annual Reports for the financial years 2006-07, 2007-08 and 2008-09, Mr. Prannoy Roy, apart from being one of the promoters, was also the Chairman and Whole Time Director of NDTV during the investigation period. Further, Mrs. Radhika Roy, who is the spouse of Mr. Prannoy Roy, was also one of the promoters and also served as the Managing Director of NDTV.

(2) The equity shares of NDTV were listed on National Stock Exchange of India Limited (hereinafter referred to as “NSE”) and BSE Limited (hereinafter referred to as “BSE”). In the course of investigation, information pertaining to various corporate announcements made by NDTV as gathered from the Company and stock exchanges were perused from which it was revealed that the Company had filed six (6) price sensitive information (hereinafter referred to as “PSI”) for disclosure during the Investigation Period. The details of those price sensitive events and the respective periods of unpublished price sensitive information (hereinafter referred to as “UPSI”) with regard to each of those PSIs are depicted in the following table:

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