Leading media firm NDTV Ltd on June 14 said it has been issued show-cause notices by market regulator SEBI for alleged violation of takeover norms with respect to timely disclosure of some share transactions of its promoters.
The company further said it is "of the opinion that the alleged non-compliances referred in SCN are technical/ procedural in nature" and it is seeking legal advice to take appropriate action in the said matter.
"The company and its promoters have, on June 13, 2016, received Show Cause Notices (SCNs) issued by SEBI with regard to certain non-compliances related to delay/non-filing of disclosures in the previous years under SEBI Takeover Regulations," NDTV said in a regulatory filing to BSE.
As per the copy of the notice issued by SEBI, which was also filed by the company with the stock exchange, the watchdog examined certain "non-compliances" by NDTV and "prima-facie" found it to have violated certain provisions of the SEBI Act and the SEBI Takeover Regulations.
Intimating about its decision to initiate adjudicating proceedings for the alleged violation, SEBI further said the company should file an application within two months in case it wants to avail a settlement of the proceedings.
SEBI probe followed a complaint filed in May 2015 by Quantum Securities, alleging multiple disclosure violations by NDTV, its promoters and major shareholders.
With respect to allegations regarding disclosure violations, SEBI sought details from stock exchanges -- BSE and NSE.
Citing information available with stock exchanges, SEBI said non-compliance with regulations in respect of certain transactions have been observed. These include sale of shares by General Atlantic to promoters, acquisition of shares by Indiabulls Financial Services and shares purchased by promoters.
Besides, in certain instances, the company made delayed disclosures, as per the SEBI notice.
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