NSE imposes Rs 1.88 lakh penalty on NDTV for delay in appointing board director

News broadcaster New Delhi Television Ltd (NDTV) on Thursday said NSE has imposed a penalty of Rs 1.88 lakh on the firm for delay in appointing the sixth director on the board.

On Wednesday, BSE too levied a fine of Rs 1.88 lakh on the company for the same reason.

"The National Stock Exchange of India Ltd (NSE)... has imposed a penalty on the company of Rs 1,88,800 (inclusive of GST and at the rate of Rs 5,000 per day) for the alleged delay in appointing a sixth director to the board of the company, as required by Regulation 17(1)(c) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," NDTV said in a regulatory filing.

This penalty pertains to the period July 1- August 1, 2020.

NDTV said since the alleged non-compliance was solely on account of the COVID- 19 pandemic, the company shall file an application within 15 days to seek waiver of the penalty imposed by NSE in accordance with the carve-out policy, which allows for waiver of fines.

It said on March 30 and June 29 this year, the company wrote to SEBI, explaining its difficulty in finalising a candidate for the appointment of the sixth director on account of the pandemic.

"The company has still not received any response to, or acknowledgement of, these letters which sought an extension of time to appoint the sixth director. It is pertinent to note that this letter was sent to SEBI ahead of the deadline of April 1, 2020 for appointment of a sixth director," NDTV added.

The company had said that on account of the pandemic, its board found it impossible to meet in person suitable candidates for the sixth director.

The company had also submitted its explanations of the alleged non-compliance to NSE and BSE vide response dated July 31 and August 12, respectively.

On August 2, NDTV appointed Darius Taraporvala as the sixth director to the board of the company, subject to the approval of the Ministry of Information and Broadcasting.

Earlier, BSE and NSE had imposed a penalty of Rs 5,36,900 each on the company for the said delay during the period April 1, 2020 till June 30, 2020.