SAT declines to stay SEBI's observations against Dish TV

The Securities Appellate Tribunal (SAT), on March 9, declined to stay the prima facie observations by the Securities and Exchange Board of India (SEBI) against satellite service provider Dish TV's independent directors, board and compliance officer.

SAT said that, since the company's annual general meeting (AGM) voting results got declared, appeal on that ground had become infructuous and that it did not find any reason to stay such remarks.

The tribunal also asked Dish TV to file its reply by March 20 in the matter against SEBI's March 7 order that directed Dish TV India Ltd to declare its annual general meeting (AGM) voting results, held on December 30.

In its interim order, SEBI noted that there was no restraint imposed by Bombay High Court on the firm from declaring voting results and despite this, Dish TV failed to disclose results. The regulator also said the directors have failed to comply with the provisions of the regulations.

"The board of directors must have stepped in to ensure that the company makes necessary disclosures as required under law and complies with all the applicable statutory provisions," the SEBI order said.

The regulator had also issued show cause notice to its promoter and directors of the company including, Jawahar Lal Goel, chairperson and managing director asking why the voting results were not disclosed despite repeated advisories from SEBI.

Dish TV, on March 8, disclosed its 33rd AGM's voting results. The three resolutions that were put for voting at the AGM included adoption of the audited standalone and consolidated financial statements and report of the Board of Directors and Auditors, re-appointment of Ashok Mathai Kurien as director, and ratification of remuneration of cost auditors for the financial year 2021-22.

According to the results posted by the company, all the resolutions have failed to obtain the requisite number of shareholder votes in favour under remote e-voting and Insta Poll.

SEBI's order came after it received complaints from Yes Bank and other shareholders, alleging that Dish TV has wrongfully withheld the results of voting on various proposals put forth in the AGM.