Pranoy Roy, wife defies Sebi's warning about a decade's trade, before HC

MUMBAI: Pranoy Roy and his wife Radhika approached the Bombay high court on January 2 to challenge a notice of cause for the show issued in August 2018 by the market regulator Stock Exchange Board of India (Sebi) for alleged violations of its privileged information rules when exchanging news channel scripts NDTV As promoters Roys has challenged the validity of the notification dated August 31, 2018, issued by Sebi ten years after the alleged commercial activity in violation of the SEBI Regulations (Prohibition of use of privileged information), of 1992.

The Roys, through their lawyer Fereshte Sethna, claimed that Sebi notice It constitutes a serious abuse of the process and that the accusations made by the regulator are unfounded and unfounded. His case is that Sebi has no evidence and no documents have been provided to justify the accusations.

His plea to the HC bank headed by judge SC Dharmadhikari was to cancel the notification and receive the documents on which the Sebi is based.

The nature of the accusations made against the Roys is of a serious and serious nature and, therefore, requires a probative basis as a mandatory precursor for the initiation of such procedures, as is the case. In addition, Sethna's argument was that the framework does not require the company to keep a record for more than three years and, therefore, the ten-year Trade notice places them in an unfair position to refute.

Their petition says that since Sebi notice is issued after a lapse of ten years from the alleged transactions, relevant records are no longer available with them and hence the notice would, "irretrievably prejudice and jeopardize the right of the to defend themselves".

The Roys said that the Sebi notice relates to proposed restructuring of NDTV into 'News related Businesses' and investments in 'Beyond News' businesses held through NDTV Network Plc, during 2008, a proposal that was eventually not implemented. The Sebi issued the notice saying that they traded in the shares of NDTV , while in possession of 'unpublished price sensitive information' pertaining to such proposed restructuring, and that such alleged wrongful gain is liable to disgorgement. Sebi was represented by counsel JJ Bhatt. The case of Sebi is that whatever documentation was required was shown.

Roys' allegation is that as promoters they had, sought and obtained authorizations prior to negotiation in terms of the Code of Conduct for the Prohibition of the use of privileged information adopted by the channel. The HC bank was not inclined to make any observations or grant any immediate relief on Thursday and put the matter to order next Monday.