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The Bombay High Court on Thursday clarified that the pendency of the court proceedings will have no bearing on compliance of Securities and Exchange Board of India's (Sebi's) regulations, in a matter pertaining to Dish TV Ltd.
Earlier, in January, Yes Bank had moved the Bombay High Court seeking court’s intervention to direct Dish TV Ltd to declare the results of their annual general meeting.
Dish TV, however, objected to the declaration of the AGM results citing pendency of litigation.
Sebi had warned Dish TV India Ltd of regulatory action for failing to disclose the results of its annual general meeting (AGM) held on 30 December.
On Feb. 9, Dish TV received an advisory letter stating that as per the Sebi (Listing Obligation and Disclosure Requirements) Regulations, 2015, the listed entity is mandated to submit the voting results two days after the AGM concludes, according to the regulator’s advisory letter enclosed with an exchange filing.
The disclosure, Sebi said, had already been delayed by 37 days.
According to Sebi, even though there’s no prohibitory or restraint order by the Bombay High Court, Dish TV failed to comply with the legal requirement. Not revealing the AGM results, it said, affects the shareholders and investors the most.
Dish TV in response to Sebi's advisory letter said, “Thus, very issue of declaration of results of the AGM conducted on Dec. 30, 2021 is in fact sub-judice before the high court, which has taken cognizance of the matter, and will be hearing the arguments of the parties shortly, and issue its decision."
Essentially, Yes Bank is trying to seek the declaration of the AGM results, since it is one of the largest shareholder of Dish TV and the private lender had requisitioned an extra ordinary general meeting for reconstitution of the Dish TV's board, citing corporate governance lapses.
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