Sebi asks Dish TV to make AGM results public or face action
Premium- This warning comes at a time when Dish TV has been fighting a legal battle with its largest shareholder Yes Bank against disclosure of its AGM results.
Mumbai: The Securities and Exchange Board of India (Sebi) has warned Dish TV India Ltd of regulatory action for failing to disclose the results of its annual general meeting (AGM) held on 30 December, the company said in a stock exchange filing on Friday.
In an advisory on 9 February, the markets regulator told the company that all listed entities are mandated to submit the voting results within two days after the AGM concludes, according to the Sebi (Listing Obligation and Disclosure Requirements) Regulations, 2015. The disclosure has already been delayed by 37 days, it added.
The warning comes when Dish TV is fighting a legal battle with its largest shareholder, Yes Bank Ltd, against the disclosure of its AGM results.
In January, Yes Bank had moved the Bombay high court to direct the direct-to-home service provider to disclose the AGM results. The court, however, has maintained a status quo on the matter. The next date of hearing has not been decided yet. “In spite of there being no prohibitory/restraint order from the court, the company has failed to disclose the voting results of the AGM held on 30 December 2021, thereby failing to comply with the provisions of Regulation 44(3) of the SEBI LODR," it said in the letter. “As this action by the company ultimately affects shareholders and investors due to lack of information in the public domain, the company is once again called upon to disclose the voting results of the AGM held on 30 December, immediately as the disclosure has already been delayed by 37 days. The non-compliance by the company has been viewed seriously by Sebi, and it is informed that the continuing non-compliance shall result in the initiation of appropriate enforcement action against the company," it added.
In its response, Dish TV said: “The very issue of declaration of the AGM results conducted on 30 December is, in fact, sub-judice before the honourable high court, which has taken cognizance of the matter, and will be hearing the arguments shortly."
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The AGM results are crucial considering that financial creditors led by Yes Bank are expected to have voted against the three resolutions: The adoption of financial statements for 2020-21, re-appointment of Ashok Kurien as director, and approval of costs to its auditors. A rejection of the resolutions will deny Dish TV to proceed with its plan to raise ₹1,000 crore via a rights issue, which is the genesis of the legal battle between it and Yes Bank.
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