'Dish TV' To Move SAT Against Sebi Order In AGM Results Non-Disclosure Case

Dish TV India Ltd on Tuesday said it will challenge the Sebi order in the Securities Appellate Tribunal (SAT), wherein the markets regulator had directed the company to disclose the results of its annual general meeting (AGM) that was held on December 30, within 24 hours. Sebi, in its interim order passed on Monday, had asked Dish TV to disclose the outcome of the AGM held in December.

In addition, the regulator directed depositories to freeze the demat accounts of Dish TV's directors and compliance officer till the AGM outcome is published. Besides, Sebi issued show cause notice to the company and its directors. Following the Sebi's order, Dish TV, in a filing to the stock exchanges informed that "the company is preferring an appeal before SAT in respect of the said order". Sebi, in its interim order passed on Monday, said "Dish TV's compliance officer Ranjit Singh shall immediately, and in any case not later than 24 hours from delivery of this order, ensure compliance with Sebi's LODR (Listing Obligation and Disclosure Requirements) Regulations, 2015, by disclosing the voting results of the annual general meeting to both the exchanges".

The SEBI order came after the markets regulator received complaints from Yes Bank Ltd (YBL), IndusInd Bank and other shareholders alleging that Dish TV has wrongfully withheld the results of voting on various proposals put forth in the AGM. Yes Bank and IndusInd Bank are among the largest shareholders, holding 24.78 per cent and 3.78 per cent of the paid-up equity share capital of the company, respectively, while promoters held nearly 6 per cent stake in the firm as of the quarter ended December 2021. In its interim order, Sebi noted that there was no restraint imposed by the Bombay High Court on the company from declaring the voting results.

Despite this, Dish TV, which is part of the Essel Group, failed to disclose the AGM results. Under the LODR rules, the company was required to disclose the voting results of the AGM in the prescribed format within two working days -- on or before January 3, 2022. The controversy pertains to the invocation of pledged shares by Yes Bank. Certain entities of Essel Group had taken loans in the range of thousands of crores from the bank, which upon default caused the invocation of the shares pledged as security for such loans.

This resulted in the alleged transfer of ownership of such shares in the name of Yes Bank. WCA LLP is a promoter group entity of the company which is involved in a dispute with Yes Bank on the ownership of these pledged shares. Further, Yes Bank has, from time to time, brought to Sebi's notice, various actions and litigations (allegedly frivolous), taken by the promoters to prevent the lender from exercising its voting rights at the AGM of the company, Sebi noted. This litigation has reached the Supreme Court and the apex court has intervened in one of the cases and restored voting rights of Yes Bank.

(PTI)