NDTV surges 20% as Sebi orders Vishvapradhan Commercial to make open offer

The stock is locked in upper circuit of 20% at Rs 39 on the BSE in early morning trade on Wednesday.

Shares of NDTV are locked in upper circuit of 20% at Rs 39 on the BSE in early morning trade on Wednesday, after the Securities and Exchange Board of India (Sebi) on Tuesday passed an order asking Vishvapradhan Commercial Pvt Ltd (VCPL) to make an open offer for the company.

Till 09:25 am; a combined 160,893 shares changed hands on the counter and there were pending buy orders for 462,932 shares on the BSE and NSE.

“The order noted that VCPL had acquired indirect control through a loan agreement in 2009, which would have necessitated an open offer at the time. The regulator has now asked for this open offer to be made with interest,” Business Standard reported.

Meanwhile, the Bombay High Court on Tuesday directed the Reserve Bank of India (RBI) to consider the compounding applications filed by news organisation NDTV in a case of alleged violation of the Foreign Exchange Management Act (FEMA).

“The Bombay High Court has today directed the Reserve Bank of India (RBI) to consider the compounding application(s) filed by the Company. The Court has ruled in favour of the writ petition number 2026/2017 filed by NDTV against the RBI and Enforcement Directorate,” NDTV said in a BSE filing on Tuesday.

“NDTV had approached the Bombay High Court against the RBI's refusal to consider its compounding applications in circumstances where the RBI was relying on the Enforcement Directorate's unsubstantiated allegations against NDTV. The Bombay High Court has today quashed the directive issued by the Enforcement Directorate to RBI which had prevented the compounding, “ it added.

Click here : New Delhi Television Share Price

WhatsApp leak: Sebi, bourses checking trade details of over 24 companies

The exchanges are analysing the trade data of the last 12 months of such companies in order to detect any possible breach of norms

Sebi and exchanges have started examining trade details of over two dozen stocks as part of a probe into the alleged leak of key financial details of these companies through WhatsApp while the regulator is also considering seeking call data records of the persons involved.

The companies include several listed blue-chip firms, officials said on the condition of anonymity.

The exchanges are analysing the trade data of the last 12 months of such companies in order to detect any possible breach of norms while Sebi is taking the help of data warehouse and its intelligence systems, they added.

Under Sebi rules, all the financial details of listed companies should be disseminated only through stock exchanges as they are considered price-sensitive.

Besides, Sebi is considering seeking call data records (CDRs) of all the persons involved in alleged circulation of key financial details and other information about listed companies on social media groups before they are made public.

ALSO READ: WhatsApp earnings leak: Sebi must monitor insider trading on social media

The markets regulator has powers to seek call data records, excluding the exact content of the communication, from telecom firms.

CDRs generally list out the number of conversations between two or more entities and are different from phone- tapping, where an agency can snoop on or record telephonic conversations of those suspected to be engaged in some wrong- doings.

The information about the listed companies is mostly being made through SMSes, WhatsApp and various social media platforms, where names of some established brokerage houses and exchanges are also being misused.

While the Securities and Exchange Board of India (Sebi) has already taken action in several such cases so far, it is investigating a number of others involving similar activities, the official said.

The regulator has already taken action against several entities for providing investment advice without registration. These included MCX Biz Solutions, Moneyworld Research and Advisory, Global Mount Money Research and Advisory, GoCapital, CapitalVia Global Research and one Imtiyaz Hanif Khanda and his maternal uncle Vali Mamad Habib Ghaniwala. (more)