Dish TV Vs SEBI: Securities Appellate Tribunal Declines To Grant A Stay

The Securities Appellate Tribunal declined to entertain Dish TV India Ltd.'s plea against the market regulator's March 7 order that, apart from asking the company to disclose the results of its AGM, also made certain observations.

Since Dish TV has already published results of the annual general meeting, the appeal on this ground has become infructuous, the appellate tribunal said.

Earlier this week, the Securities and Exchange Board of India had directed Dish TV to disclose the results of the AGM held on Dec. 30. The company disclosed the results to the exchanges on Tuesday. All three resolutions put to shareholder vote by the company have been defeated.

In its plea, Dish TV had also requested for a stay on SEBI's prima facie observations against the company's board, independent directors, compliance officer and scrutiniser.

Also Read: Dish TV To Disclose AGM Results, Orders SEBI

SEBI's observations against the company officers have put them in great difficulty, especially since hearings are ongoing in various other forums, Senior Advocate Pradeep Sancheti argued. "Dish TV was not heard before the order was passed. SEBI's observations may be stayed so that they don't influence the case in other forums."

The appellate tribunal found no merit in Dish TV's argument and declined to grant a stay on SEBI's prima facie observations in the March 7 order.

Dish TV's counsel Zal Andhyarujina also contested the fine imposed by the stock exchanges on the company via a letter dated Feb. 14 for non-compliance with SEBI's listing regulations. Both the exchanges had imposed a fine of Rs 10,000 on Dish TV for non-disclosure of AGM results.

Fines imposed by the NSE and BSE have put Dish TV in a tough position, Andhyarujina said. "Paying the fine would mean that Dish TV is acknowledging its at fault."

Counsel representing the exchanges responded to it saying Dish TV can pay the fine and apply for a waiver. "Else, consequences like suspension of trading, freeing of promoters' accounts, etc. will follow."

The appellate tribunal dismissed Dish TV's ask for a stay on penalty as well. It directed the company to move the stock exchanges seeking a waiver. "If such an application is filed, the BSE and NSE will consider the same and pass appropriate orders."

With these observations, the appellate tribunal disposed of the appeal directing Dish TV and the board to respond to SEBI's show cause notice before March 20. The regulator has been granted four weeks to decide the matter.

Also Read: Yes Bank Approaches Tribunal, Ministry And SEBI Alleging Mismanagement At Dish TV