In a setback to co-founders of New Delhi Television (NDTV) Prannoy Roy and wife Radhika, the Bombay High Court on Monday refused to interfere in the plea filed by them challenging the show-cause notices issued by the Securities and Exchange Board of India (SEBI).
A Division Bench of Justices S.C. Dharmadhikari and R.I. Chagla was hearing a plea filed by the two challenging the SEBI notices for alleged violations in regulations. The first notice was sent to the Roys on February 12, 2015 alleging violations of the SEBI Act and Prohibition of Insider Trading Regulations.
On August 31, 2019, the SEBI again sent notices to them alleging that they have traded shares of NDTV while being in possession of unpublished price sensitive information. Thereafter the duo sought for papers relied upon by the SEBI to send them the notices.
‘Abuse of power’
The petition said, “the show-cause notices are arbitrary, unreasonable and issued in gross abuse of power and put the petitioners to risk of detriment, jeopardy, prejudice and hardship.”
The court said the petitioner could face the notice and attend the hearings before the Securities Appellate Tribunal and dismissed the matter.
