Dish TV India Ltd shares rose over 8% to Rs 15.24 on the BSE in Tuesday’s intra-day trade after the Securities and Exchange Board of India (SEBI) ordered the company on March 7 to announce the voting results of its annual general meeting (AGM) conducted on December 30 within the next 24 hours. The regulator also asked depositories to immediately freeze the company’s directors’ and compliance officer’s Demat accounts until the AGM voting results are disclosed to stock exchanges, or until additional orders are issued, whichever comes first.
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The regulator also issued a show-cause notice to its promoter and directors of the company including, Jawahar Lal Goel, chairperson and managing director, Ashok Mathai Kurien, non-executive director, Bhagwan Das Narang, non-executive independent director, Shankar Aggarwal, non-executive independent director, Anil Kumar Dua, executive director and chief executive officer, Rashmi Aggarwal, a non-executive Independent women director Ranjit Singh, company secretary and compliance officer.
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“Considering the prima-facie observations and allegations mentioned in the present order, Entities no. 1 to 8, as listed at the beginning of this order, are hereby called upon to show cause as to why further appropriate directions under the provisions of Sections 11(1), 11(4) and 11B(1) of SEBI Act should not be issued against them and also why appropriate penalty shall not be imposed”, the SEBI order said.
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The decision was made after SEBI received complaints from Yes Bank and other shareholders stating that Dish TV had unjustly withheld the results of voting on several proposals presented at the AGM.
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Earlier this month, the SEBI warned Dish TV with regulatory action for failing to submit the results of its AGM. The injunction was issued after the company failed to reveal the results of the AGM vote even after 37 days.
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The AGM results are critical because financial creditors, led by Yes Bank and IndusInd Bank, are expected to vote against three resolutions: the adoption of 2020-21 financial statements, the re-appointment of Ashok Kurien as director, and the approval of costs to its auditors. Yes Bank presently owns 24.78% of Dish TV, while IndusInd Bank owns 3.78%.
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If the resolutions are rejected, Dish TV would be unable to proceed with its proposal to raise Rs 1,000 crore through a rights issue, kicking off the legal war between Dish TV and Yes Bank. Yes Bank seeks to reorganize Dish TV’s board of directors, alleging corporate governance issues.