Sebi passes order against NDTV, imposes Rs2 crore penalty
1 min read 04 Jun 2015, 11:38 PM ISTSebi says NDTV failed to disclose a tax demand of Rs450 crore raised dated 21 February 2014 to the stock exchanges
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Mumbai: The Securities and Exchange Board of India (Sebi) passed an order against New Delhi Television (NDTV) for non disclosure of material information to the stock exchanges.
The capital markets regulator also imposed a monetary penalty of ₹ 2 crore against NDTV related to this matter.
In a order passed late on Thursday, Sebi said that NDTV had failed to disclose a tax demand of ₹ 450 crore raised by the income-tax department, dated 21 February 2014, to the exchanges.
The order went on to say that the tax demand was only disclosed in May 2014 after a clarification was sought by the exchanges.
“In view of the above, it is alleged that the noticee being a listed company has failed to comply with clause 36 of the listing agreement," said Sebi.
Clause 36 of the listing agreement requires listed entities to immediately inform exchanges of events that will have a bearing on the performance of the company or its stock price.
In its order, Sebi noted that the tax demand, though disputed by the company, was material when compared to the revenue of the company.
The disputed tax demand of ₹ 450 crore was higher than the ₹ 349.77 crore revenue reported by the company for the year ended March 2014 and also higher than its net worth of ₹ 365 crore as on 31 March 2014.
“In view of the above, noticee should have made voluntary disclosure to the exchanges on an immediate and prompt basis," said the order.
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