SEBI had barred the Roys from buying, selling, and dealing in securities directly and indirectly for two years in November 2020.
The Securities Appellate Tribunal (SAT) has overturned the insider trading order issued by the Securities and Exchange Board of India (SEBI) against Prannoy Roy and Radhika Roy, former promoters of NDTV as per the media reports.
In November 2020, SEBI had barred the Roys from buying, selling, and dealing in securities directly and indirectly for two years. It also directed them to disgorge more than Rs 16.97 crore gained from alleged insider trading in NDTV's shares.
SEBI's probe found that the Roys had made illegal gains by trading in NDTV shares when they were in possession of unpublished Price Sensitive Information (UPSI).
However, SAT referred to an earlier order stating that the information (PSI-6) related to NDTV's reorganization was not price-sensitive. Therefore, the charge of insider trading during that period could not be sustained.
SAT also noted that Prannoy Roy and Radhika Roy had obtained pre-trade clearance from NDTV's Compliance Officer, which was in conformity with NDTV's Code of Conduct and the PIT Regulations.
The SAT order stated that the impugned order passed by SEBI's whole-time member against Prannoy Roy and Radhika Roy could not be sustained.