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The Securities Appellate Tribunal (SAT) quashed Securities and Exchange Board of India’s (Sebi) order which restricted former NDTV promoters Prannoy Roy and Radhika Roy from the capital markets for 2 years accusing insider trading.

“The learned WTM reasoned that SEBI came to know of the insider trading when it received complaints from NDTV. Thereafter, SEBI was required to make investigation. It was further held that no period of limitation is provided,” The SAT presiding officer justice Tarun Agarwala and technical member Meera Swarup said in order.
 

It added that support from many agencies to demonstrate that not all cases of delay creating prejudice will occur when a complicated subject and multiple violators are involved. The well-informed WTM additionally found that SEBI was needed to initiate an investigation after receiving the allegations, which is why there was a delay.

A Sebi investigation showed that the complainants’ promoters, Prannoy Roy and Radhika Roy, engaged in insider trading in NDTV stock during the time of the probe. Vikramaditya Chandra, group chief executive officer, director of finance and group chief financial officer at NDTV, was also found to have traded during the inquiry period while in possession of price-sensitive information, according to the investigation. The investigation turned up evidence that the Company, NDTV specifically, had submitted six price-sensitive disclosure requests during the investigation period.