Appellate tribunal rejects Dish appeal against Sebi order
Financial creditors, led by Yes Bank that owns 45% in Dish TV, are said to have voted to oust the directors
The Securities Appellate Tribunal on Wednesday rejected Dish TV India Ltd’s appeal to expunge the observations by Securities and Exchange Board of India (Sebi) against its promoter, non-executive directors and compliance officer in a 7 March order.
In its order on Monday, Sebi directed the satellite television broadcaster to disclose results of the shareholder meeting on 30 December within 24 hours.
“We do not find any reason to stay the remarks made by Sebi. Appeal stands rejected,” the bench led by justice Tarun Agarwala said. “We direct the appellant (Dish) to file its reply by 20 March, the whole time member of Sebi will then pass appropriate orders in the matter. Accordingly, the matter has been disposed of,” it added.
Sebi had also issued show cause notices to the company’s directors, questioning why the outcome of its annual general meeting had not been revealed despite repeated warnings. “Prima-facie the company secretary cum compliance officer of DTL has failed in discharging his duty and appears to be acting aiding, abetting and assisting DTL and its management in the mischief being played on the shareholders of the company and their blatant disdain to the law of the land. Therefore, he is prima-facie guilty of violating Regulation 6(2)(a) of the LODR Regulations,” Sebi had said in its order.
Pradeep Sancheti, appearing for Dish TV, informed the tribunal that Sebi compelled it to disclose the voting results, which should not have been made public according to the Companies Act. While seeking a stay on the remarks, Sancheti argued that the observations could also impact other matters pending before various fora such as the Bombay high court and the National Company Law Tribunal.
In yet another appeal before the SAT, Dish TV’s counsel Zal Andhyarujina said penalties of ₹10,000 and ₹11,000 imposed by BSE and NSE for non-compliance of Sebi’s regulations on listing obligations and disclosure requirements (LODR) should also be set aside.
The SAT directed the firm to deposit the amounts before filing a plea for a waiver and subsequently, the exchanges would pass appropriate orders in the matter. Financial creditors, led by Yes Bank that owns 45% in Dish TV, are said to have voted to oust the directors, and promoter Jawahar Lal Goel. Yes Bank, which owns a 24.78% stake alleged that the company wrongfully withheld the voting results and the various proposals put forth at the AGM held in December.
The depositories had been instructed by Sebi to immediately freeze demat accounts of the company’s directors and compliance officer until the voting results of the AGM were filed on the stock exchanges or until further orders.
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