India markets regulator dismisses case of inadequate disclosures against NDTV
MUMBAI: India’s markets regulator on Friday disposed of proceedings against New Delhi Television Ltd , ruling that the company did not violate disclosure rules.
Here are the key details:
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In 2009, NDTV’s founders entered into a loan agreement that gave the lender options to acquire a significant stake in the broadcaster.
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In June 2018, the Securities and Exchange Board of India (SEBI) had held that the agreement resulted in a change in control.
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SEBI began disclosure violation proceedings since NDTV did not disclose the SEBI finding to stock exchanges.
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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.
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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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