SEBI has banned NDTV promoters Pranay Rai and Radhika Rai for two years. During this time, they will not be able to buy and sell in the securities market, both of whom are accused of being involved in insider trading in the past.
The Securities and Exchange Board of India (SEBI) has also asked both to return Rs 16.97 crore earned from the insider trading 12 years ago. In a statement, NDTV said on Saturday that SEBI's decision against its founders was based on an incorrect evaluation of facts. The company will immediately appeal against this decision of the capital markets regulator.
Apart from Pranay and Radhika Rai, Sebi has also barred seven other individuals and entities from stock trading for one to two years. Some of them unpublished through Price Sensitive Information (UPSI), it has been asked to return illegal earnings made through the sale and purchase of shares. SEBI orders three others including the former CEO and CFO of the company.
There are also names of former superiors who have been fined. SEBI has taken this decision after examining the trading in the company's shares from September 2006 to June 2008. SEBI found that NDTV and several other entities, including the promoters, have violated various provisions relating to insider trading during this period. The concerned person and entity can pay the amount alone or together.