Settlement Order passed in the matter of Dish TV India Limited
The Securities and Exchange Board of India (SEBI), has passed a Settlement Order in the matter of Dish TV India Limited.
SEBI was informed by Dish TV India Limited ( DTIL/Company/Applicant/Noticee) about certain non-compliances and violations observed with regard to the SEBI (Prohibition of Insider Trading) Regulations, 2015 (SEBI PIT Regulations)and Code of Conduct for Prevention of Insider Trading (Code) by two of its promoters, namely, Direct Media Distribution Ventures Private Limited (DMDVPL) and World Crest Advisors LLP(WCA).
Pursuant to this, SEBI carried out an examination covering the period from December 21, 2016 to September 30, 2019 to ascertain any violation of SEBI PIT Regulations or SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (SEBI SAST Regulations)and observed certain violations of provisions of SEBI PIT Regulations, alleged to have been committed by the Noticee.
The Show Cause Notice(SCN) had mainly alleged that there were certain transactions in the nature of invocation of pledge done by DMDVPL and WCA in the scrip of DTIL wherein there was a delay in making necessary disclosures to the exchanges by the Noticee.
It was observed that the Noticee was aware of the transactions of DMDVPL and WCA .As per Regulation 7(2) (b) of SEBI PIT Regulations, the Noticee should have notified the transactions of invocation of pledge to the exchanges within two trading days from becoming aware of the said information. However, the Noticee notified these disclosures to the exchanges only on a later date, thereby resulting in a delay of 66 days and 76 days.
So, it was alleged that failing to inform the exchanges about the transactions of DMDVPL and WCAeven after being aware of the same, the Noticee had violated the provisions of Regulation 7(2) (b) of SEBIPIT Regulations.
Pending adjudication proceedings, the Noticee(applicant), proposed to settle the instant proceedingsinitiated against it, without admitting or denying the findings of fact and conclusions of law, through a settlement order and filed settlement application with SEBI in termsof Regulations 3(1) and 3(2) of the SEBI (Settlement of Administrative and Civil Proceedings)Regulations, 2018 (Settlement Regulations).
Both the High Powered Advisory Committee (HPAC) and the Panel of Whole Time Members of SEBI considered the settlement terms and proposed that the case may be settled upon payment of Rs. 8,20,782 by the applicant as settlement amount towards the settlement terms.
Accordingly, the settlement amount was remitted to SEBI and duly received by SEBI.
In view of the acceptance of the settlement terms and the receipt of settlement amount by SEBI, the instant adjudication proceedings initiated against DTIL were disposed of in terms of section 15JB of the SEBI Actread with regulation23(1) of the Settlement Regulations on the basis of the settlement terms.