SAT quashes Sebi order against NDTV founders Prannoy, Radhika Roy

The Securities Appellate Tribunal (SAT) on Thursday overturned an order by the Securities and Exchange Board of India (Sebi) against Prannoy Roy and Radhika Roy, the founders of NDTV.

The order, issued by Sebi in 2020, accused the couple of insider trading in NDTV shares and barred them from accessing the securities market for two years, in addition to calling for the disgorgement of gains.

SAT overturned the order, stating that the information scrutinised by Sebi was not price-sensitive, and the Roys were not insiders.

"We find that Prannoy Roy and Radhika Roy received pre-trade clearance from NDTV's compliance officer, a fact acknowledged in the show cause notice. Therefore, the trades executed by these two individuals were in line with NDTV's Code of Conduct and the PIT Regulations," SAT observed.

The issue concerned trades carried out between September 2007 and April 2008, with allegations of an illicit gain of nearly Rs 17 crore.