Sebi tells Dish TV to disclose AGM results within 24 hours
PremiumDepositories have been told to freeze demat accounts of key Dish TV officials, until disclosure
MUMBAI : The Securities and Exchange Board of India on Monday in an ad-interim order directed Dish TV India Ltd to disclose the results of its annual general meeting (AGM)that was held on 30 December within 24 hours from the receipt of the said order.
Sebi in its order said “Dish TV’s compliance officer Ranjit Singh shall immediately, and in any case not later than 24 hours from delivery of this order, ensurecompliance with Sebi’s LODR (Listing Obligation and Disclosure Requirements) Regulations, 2015,by disclosing thevoting results of the annual general meeting to both the exchanges".
In addition, the Board of Directors of Dish TV has been asked to ensure that the compliance officer follows the aforementioned directive by Sebi.
On receiving the Sebi order, the depositories are directed to freeze the demat accounts of the directors and the compliance officer of the company, till the voting results have been disclosedon the stock exchanges.
Sebi said in case the company does not comply with the said directive a detailed scrutinizers report by the stock exchanges should be made available to the investors.
Further the Sebi order also said the company has to show cause as to why further appropriate directions should not be issued against them and why appropriate penalty shall not be imposed, for alleged non-disclosure to the stock exchanges and ignoring the Sebi advisory and the Bombay High Court order.
In the matter, Yes Bank Ltd alleged that Dish TV had wrongfully withheld the voting results of on various proposals put forth in its annual general meeting held on December 30, 2021.
IndusInd bank also requested Sebi to take necessary action against Dish for non-compliance and for misinterpreting the Bombay High Court’s order.
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Moreover, SEBI has also received complaints from other shareholders of the company and investors in the securities market on the issue of non-declaration of the results of the AGM by the Dish Tv
In February, the Bombay High Court had clarified that the pending court proceedings will have no influence on the Sebi regulations in a case involving Dish TV.
Yes Bank had filed a petition with the Bombay High Court, requesting that the court intervene and order Dish TV to declare the results of its annual general meeting.
Sebi had warned Dish TV of regulatory action for failing to disclose the results of its annual general meeting held on 30 December.
On Feb. 9, Dish TV received an advisory letter stating that as per the SEBI’s (LODR) regulations, every 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, the Securities and Exchange Board of India said, had already been delayed by 37 days.
Dish TV failed to comply with the legal criteria, according to SEBI, despite the fact that the Bombay High Court had issued no prohibition or restraint order. It claimed that not disclosing the AGM results would largely have an impact on shareholders and investors.
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."
Sebi has given Dish TV 14 days to file its reply in the matter.
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