New Delhi Television Limited (NDTV) has been subjected to another penalty by the Bombay Exchange Stock (BSE) of Rs 1,88,800 (inclusive of GST at the rate of Rs 5,000 per day) for the delay in appointing a sixth Director to its board in line with SEBI Regulations, 2015, the company stated in a BSE filing yesterday.
The penalty is for the period commencing from July 1, 2020 till August 1, 2020. NDTV had stated the non-compliance was solely on account of COVID-19 pandemic with the company filing an application within 15 days to seek waiver of the revised penalty imposed by BSE in accordance with the carve-out policy which allows for waiver of fines.
NDTV had on March 30, 2020 and June 29, 2020 written to SEBI explaining its difficulty in finalizing a candidate for the appointment of a sixth Director on account of the COVID-19 pandemic which it didn’t receive an answer to. The letter was said to be sent to SEBI ahead of the deadline of April 1, 2020 for appointment of a sixth Director.
NDTV’s board on account of the pandemic had found it impossible to meet in person with suitable candidates for a sixth Director also submitting its explanations of the alleged non-compliance to NSE and BSE.
NDTV had on August 2, 2020 then appointed Darius Taraporvala as sixth Director to the Board of Company subject to the approval of the Ministry of Information and Broadcasting.
BSE and NSE had imposed a fine of Rs 5,36,900/- each inclusive of GST for the delay in this matter. NDTV had filed an application to seek a waiver of the penalty imposed by BSE in accordance with its carve-out policy, which allows for waiver of fines.