Promoters Of NDTV Seek Regulatory Clarifications Of The VCPL Deal

Early on Monday, New Delhi Television (NDTV) reported that its promoter group had written to the regulator of the Indian market to ask for clarification regarding whether the order issued by the regulator in 2020 limits the conversion of warrants issued to Vishvapradhan Commercial Pvt Ltd (VCPL) into equity shares. Last week, the company owned by Indian billionaire Gautam Adani declared its intention to acquire a majority stake in NDTV. Adani Group claimed to have used financial resources to convert loans into equity stakes in the promoter group in order to buy a 29.18% share in NDTV.

Adani Enterprises had claimed on Friday that New Delhi Television Ltd. (NDTV) founder Radhika and Prannoy Roy's RRPR Holding Private Limited is exempt from regulatory constraints and that they cannot 'legally' prevent the share allocation to Adani Group.

By claiming that regulatory restrictions prevent them from transferring shares, NDTV attempted to block billionaire businessman Gautam Adani's effort to acquire the bulk of the news network's shares on Thursday.

In November 2020, the Securities and Exchange Board of India (SEBI) prohibited the Roys from using the securities market as a result of its investigation into two distinct incidents involving loans and insider trading against NDTV promoters.