Adani Group Needs SEBI Approval For Acquisition, Says NDTV Adani Group responded that regulatory restrictions imposed on NDTV do not affect the conglomerate's attempt to buy a major stake in the news network

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Adani Group Twitter handle

New Delhi Television (NDTV), on Thursday, said that Adani Group needs the approval of Securities and Exchange Board (SEBI) to move forward with the acquisition of 29 per cent in the news network.

"Unless pending appeal proceedings were to successfully conclude prior, SEBI approval is necessary for the proposed Acquirer to secure 99.5 per cent interests in the Promoter Group vehicle, since this would consequently lead to acquisition of voting rights in respect of 29.18 per cent of the issued share capital of the Target Company (NDTV) held by the Promoter Group Vehicle," said NDTV in its disclosure to the stock exchange on Thursday.

As per reports, on Tuesday, Vishvapradhan Commercial Private Ltd (VCPL) along with AMG Media Networks and Adani Enterprises made an offer for NDTV under the SEBI Regulations, 2011. On November 27, 2020, the capital markets regulator, reportedly, had restrained NDTV promoters Prannoy Roy and Radhika Roy from dealing in securities directly or indirectly for two years for alleged insider trading.

As per recent reports, the Adani Group said on Tuesday its subsidiary AMG Media networks Ltd bought Vishvapradhan Commercial Pvt Ltd, which had lent INR 403.85 crore to RRPR Holding, a promoter group company of NDTV.

Sumit Agrawal, founder, Regstreet Law Advisors and former SEBI officer, in a news report quoted as saying, "There is going to be a debate between the parties if SEBI at all has the jurisdiction to get into contractual disputes. The Roys are likely to argue that the acquisition requires SEBI approval and relaxing the restraint against them. The Adani Group entities may argue that there is no subsisting right by Roys and the contract only requires performance now. Pure contractual disputes are outside the jurisdiction of SEBI. It is unlikely that SEBI will allow itself in the fray."

India's Adani Group, reportedly, said on Friday that regulatory restrictions imposed on New Delhi Television Ltd's founders do not affect the conglomerate's attempt to buy a major stake in the news network.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Living

10 Telltale Phrases That Indicate Somebody Isn't Telling the Truth

It's harder to tell a convincing lie than speak an unpleasant truth.

Leadership

8 CEO Mindset Quotes That Keep Me Honest and Inspired

In this article, I'll share a collection of my favorite inspiring quotes for CEOs and why I think they're useful to remember.

Technology

AI-Powered Marketing Automation: Streamlining Workflows for Efficiency

Welcome to the world of AI-powered marketing automation – where innovation meets optimization for unparalleled success in the digital landscape. Enter AI-powered marketing automation, a technological marvel

Side Hustle

This Gen Zer's Stylish Side Hustle Earns About $20,000 a Month and Paid Off His Parents' $200,000 Debt: 'I Enjoy the Hands-Off Nature'

Ray Cao went from working as a barista for $8 an hour to being a successful seller on online marketplace StockX.