Gurumurthy writes to SEBI Chairman about NDTV

SEBI has been keeping quiet over SEBI violations by NDTV...

Gurumurthy writes to SEBI Chairman, urges action against NDTV
Gurumurthy writes to SEBI Chairman, urges action against NDTV

Points out four specific SEBI violations committed by NDTV for which there has been no action

Noted Political commentator, Accountant, TV personality, and Editor S Gurumurthy wrote a letter to Ajay Tyagi, the Chairman of the Securities Exchange Board of India (SEBI) urging him to look into the violations committed by the promoters and key personnel of NDTV. A copy of this letter was also sent to Karnal Singh, the Director of Enforcement Directorate (ED). The letter is reproduced below, with formatting to fit the width of the screen and the emphasis (in Bold) is ours:

At the outset, I wish to mention that over the last four years I have been investigating the alleged wrongdoings of NDTV Limited and its promoters. I had sent my findings with evidence to Shri Prannoy James Roy through Shri Ram Jethmalani, a senior lawyer, as advised by the latter and got Shri Roy’s response and put out both in the public domain through social media with my conclusion that there was much be to answered by the NDTV Ltd and its promoters.

Shri Gurumurthy’s letter to Shri Ajay Tyagi, Chairman SEBI
September 18, 2017

Dear Shri Tyagi

I am making a small demand on your valuable time over an issue of public interest and under the SEBI law which casts public law obligations on the SEBI. The issue pertains to the NDTV Limited.

At the outset, I wish to mention that over the last four years I have been investigating the alleged wrongdoings of NDTV Limited and its promoters. I had sent my findings with evidence to Shri Prannoy James Roy through Shri Ram Jethmalani, a senior lawyer, as advised by the latter and got Shri Roy’s response and put out both in the public domain through social media with my conclusion that there was much be to answered by the NDTV Ltd and its promoters. This was how my probe into NDTV Ltd affair started.

Media has also published extensively news and analysis on the wrongdoings of NDTV.

My investigation has been subsequently confirmed by the assessments made by the Income Tax Department and also by the probe initiated by the Enforcement Directorate.

I had also seen that there is a SEBI angle to the case. I thought that the SEBI would be acting on the facts that had been brought out.

  1. There have been specific and large instances of insider trading by the management & other key officials namely Shri Prannoy James Roy, Ms. Radhika Roy, Shri Vikramaditya Chandra, Ms. Barkha Dutt, etc., of NDTV Ltd, [which is subject to the supervision and control of SEBI & also subject to the regulations issued under the SEBI Act, 1992] & who had unhindered access to & control over the price sensitive information & in regard to which appropriate procedures & action are pending with the SEBI for long despite several complaints lodged.
  2. It is matter of record that NDTV Ltd. has been found by the authorities to have laundered huge amount of money running into thousands of crores of rupees which is more likely than not the proceeds of crime & to facilitate that & thereafter to cover the same, NDTV Ltd. & its Directors & key Executives have indulged in large-scale illegal & unlawful acts that includes the tax-evasion, providing bribe/ illegal gratification to the complicit public servants, embezzling Govt. money, insider trading, corporate frauds, manipulation of stock market, etc., which is obligated to be investigated by the concerned agencies including the SEBI of which there is enough documentary evidence available on record.
  3. The RBI, the I.T. Dept, the CBI, the ED, etc., have already begun statutory probes in the affairs of NDTV Ltd. & which has been upheld by the Delhi High Court to be fair & reasonable. Even the SEBI has found illegality in the conduct of the NDTV Ltd & in June 2015 has imposed a penalty of Rs. 2,00,00,000 upon it for the mischief of withholding price sensitive information from the BSE & the NSE regarding the demand of income tax of Rs. 4,50 crores over laundering of US $ 1,50 million through various tax-heavens.
  4. I have been pursuing the progress of the inquiries by the various Govt. agencies primarily to insulate the agencies & its officers from undue influence & interference of political vested interest/s & harassment by the NDTV Ltd. & its accomplices & have been seeking the legal, administrative & judicial remedies for that from time to time.
  5. Shri Sanjay Dutt, a minority shareholder of NDTV Ltd. & aggrieved party having suffered substantial losses over his investments has compiled cogent details of violation of the SEBI Act, 1992 which prima-facie discloses actionable causes & which according to him has been time & again submitted to the SEBI for action against NDTV Ltd. but which has remained pending with the SEBI. It is made out that the control of the company NDTV Ltd. has been wrested by the hidden investors (M/s VPCL) in the garb of loans given & taken thus not only playing fraud upon the Stock Exchanges (the BSE & the NSE) but also the minority shareholders who have been denied the reasonable opportunity on their investments with the share capital of the NDTV Ltd. Further, using their access to & control of price sensitive information, the Directors of NDTV Ltd. namely Sri Prannoy James Roy & Ms. Radhika Roy have traded in the shares of NDTV Ltd. through their proprietary company RRPR Ltd. to their unlawful & undue enrichment to tune of about Rs. 1,32 crores & which was denied to other shareholders like the minority shareholders denied of any such benefit.
  6. Shri Sanjay Dutt has stated that he had referred to the SEBI the violations of the following SEBI regulations, among many others for the necessary action-
    • SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 1997
    • SEBI (Prohibition of Insider Trading) Regulations, 1992
    • SEBI (Prohibition of Fraudulent & Unfair Trade Practices) Regulations, 2003
    • Listing Agreement formed in compliance with the Securities Contract (Regulation) Act, 1956
  7. It is stated by Shri Sanjay Dutt that the SEBI is of the view that there is no provision in the SEBI Act to grant hearing to an aggrieved shareholder & hence the SEBI is not in a position to hear the minority shareholder like Sri Dutt, etc.
  8. I am afraid the stand of the SEBI if reported correctly is rather misplaced. Shri Sanjay Dutt being an aggrieved investor who had lost substantial amount of money because of the mischief of the NDTV Ltd. & its management including insider trading & abuse of access & control of the price sensitive information is a witness of the said mischief & the market regulator of the status of the SEBI must interview him & appraise the evidence canvassed by him to ascertain the truth of the allegations made by him against the NDTV Ltd. & its management & at the best, he can be asked to file affidavit or record his statement on oath.
  9. It is material to note that the findings of the SEBI in a regulatory inquiry would be the source material for the ED for consideration under the PML Act, 2002 & any laxity on the part of the SEBI in discharge of its regulatory function would cause miscarriage of justice as the case of the ED would get prejudiced.
  10. I am also enclosing a note which, I understand, has emanated from SEBI to the higher authority the reported inaction of the SEBI in the matter. The issue that has been raised in the note is who controls NDTV Ltd now?
  11. I am also giving the links of two media reports on the issue who controls NDTV Ltd which will show that the control issue is clearly due for probe by SEBI.
  12. I am also attaching two documents, one a letter by SEBI to Shri Sanjay Dutt and another by NDTV Ltd to BSE which I consider relevant in the context of the subject of this mail. In its letter NDTV is denying there is any change of ownership which clearly incorrect and SEBI letter to VCPL, asking clarifications on change in ownershjp (pl. see point 4) is written to VCPL but not to the counter party, RRPL!
  13. I therefore, request you to look into the matter personally. It would be far more appropriate if your officers do consider examining Shri Sanjay Dutt, listed witness against NDTV Ltd. in a criminal case filed by the CBI qua the allegations of public law mischief & misconduct of NDTV Ltd. & its management.

I am forwarding a copy of this email to the Enforcement Directorate.

With kind regards

S. Gurumurthy

Shri Ajay Tyagi, IAS (Retd.)
The Securities & Exchange Board of India
Plot No.C4-A, ‘G’ Block
Bandra-Kurla Complex, Bandra (East)
Mumbai – 400051, Maharashtra

The following is a table of SEBI violations committed by NDTV:

Table of SEBI Violations by NDTV by PGurus on Scribd

NDTV’s clarification denying a change in control:

NDTV Clarification on Change in Control to BSE by PGurus on Scribd

SEBI’s letter to minority shareholder Sanjay Dutt:

SEBI Change of Control Letter July 21 2017 by PGurus on Scribd

PGurus had already highlighted in a story dated November 28, 2016 as to how the Delhi High Court has rapped SEBI on its inaction. This forms the basis for all the above correspondence.

We are a team of focused individuals with expertise in at least one of the following fields viz. Journalism, Technology, Economics, Politics, Sports & Business. We are factual, accurate and unbiased.
Team PGurus


  1. Gurumoorthy may find it difficult to correct SEBI due to unquestionable power given by Manmohan Singh as an autonomous body,remaining unanswerable to Govt. Corruption going on a massive scale unabated in SEBI. Further Section 125 of Companys Act gives powers to the Transfer Agents to misappropriate and grb investors wealth.Sharepro Services Ltd has usurped 22 crores of investors wealth with the blessings of SEBI and are now brought under CBI Investigation. SEBI should be made answerable to Ministry of Corporate Affairs,then only it will become a responsible Body.

  2. Mr Gurumurthy recently exposed Yashwant sinha in his Twitter account – Sinha asked for BRICS Chairman post Modi did not support him That is why this sudden out burst from Sinha Mr Guru can write an article on this with additional details in pgurus This will help further expose sinha

  3. Looks like SEBI need to be taken to court for inaction, then only things will move.

    In parliament no one will raise this concern as Congress (principal opposition) is very much involved, and ruling party will keep mum on all these issues for reasons known only to themselves

  4. As always, great work by Gurumurthy ji. Let’s wait and see what action is taken by SEBI in this letter. But the way this issue is being pursued by Shri Gurumurthy ji is a lesson for many “wannabe” s within and outside Sangh Parivar. The lesson for “wannabe” is–if you aspire for a “policy-driven state”, then you MUST also comply to the rulebook, more so when you have your own Govt running the country.

    Gurumurthy ji seems very focused and objective in his dealings primarily because he doesn’t seem to have an agenda in mind. He doesn’t seem to aspire–unlike many– to become FM of India or for that matter any office of profit. Indian right needs such true MARGADARSHAK

  5. If Sebi does not act now then it is very obvious that they are hand in glove with NDTV with full support from the Finance minister and at his instance from the officials from his ministry.

  6. The crack is wide open to see the dubious conducts of Mrs & Mr. Roy but SEBI is not able to see because its spectacle is controlled by the jack of Finance Ministry. Governance is grilled to garner the glory of goons of Media/Corporates.

  7. Good that noted people like Gurumurthy petitioning to SEBI about NDTV’s stock exchange manipulations. He should also advise Finance Minister Jaitley to give directions to SEBI and ED officials


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