MUMBAI: The Bombay High Court on Monday dismissed the writ petition filed by New Delhi Television’s (NDTV) promoter Dr. Prannoy Roy and Radhika Roy against Security and Exchange Board of India’s (SEBI) show-cause notice.
SEBI had issued a show-cause notice to NDTV’s promoters for alleged violation of insider trading regulations on 31 August 2018, the promoters had challenged the same in the high court in December.
Refusing to intervene in the matter, a division bench of Justice SC Dharmadhikari and Justice RI Chagla “asked promoters to contest the adjudicatory proceedings before SEBI”.
SEBI had issued the notice alleging the petitioner had committed violation of insider trading almost a decade ago while being in possession of ‘unpublished price sensitive information’.
The promoters had challenged the SEBI’s notice in the HC on the premises that the capital market regulator failed to offer any evidence or documentation to substantiate the allegations. The petition also read that the notice was ‘arbitrary, unreasonable and issued in gross abuse of power’.
The matter NDTV promoter against SEBI came to the high court on 2 January 2020. The court also observed that SEBI’s notice is time-barred; we don’t wish to interfere with it.
