Don’t take coercive steps against NDTV promoters, SC tells Sebi

The Supreme Court on Friday told Securities and Exchange Board of India (Sebi) not to take any coercive steps against NDTV promoters Prannoy Roy and Radhika Roy.

The court said no action should be taken against the Roys till it heard their pleas on September 3, challenging penalty proceedings related to alleged violation of securities norms by concealing information from shareholders on certain loan agreements.

Solicitor General Tushar Mehta, representing Sebi, asked a bench presided over by Chief Justice N V Ramana to adjourn the matter to next Friday.

To this, the bench said, "But, do not take coercive steps." Mehta replied that there is already an order for the same.

Senior advocate Mukul Rohatgi, representing the Roys, submitted that the order is there but Sebi had now begun penalty proceedings. 

“We will adjourn, but don’t take any coercive steps,” the bench told Mehta, who agreed to it.

The court fixed the matter for hearing on next Friday.

In February, the Supreme Court had directed Sebi Appellate Tribunal to hear Roys' appeals against the orders of the market regulator without the pre-condition of depositing half of the fines.

SAT had directed the NDTV promoters to deposit 50 per cent of the disgorged amount before Sebi. 

The market regulator had imposed this penalty in view of the alleged violation of various securities norms, where information was concealed from shareholders in connection with certain loan agreements.