NEW DELHI: In an official release issued to Bombay Stock Exchange (BSE) today, New Delhi Television (NDTV) has asked FIIs, NRIs and all persons resident outside India not to deal in its shares.
Pointing out that the ministry of information and broadcasting had amended guidelines and foreign investment norms for news and current affairs news channels in 2003, the release said that Clause B prescribes that foreign direct investment (FDI) shall not exceed 26 per cent of the paid-up equity capital of the applicant company.
Clause D states that while calculating the 26 per cent FDI in the equity of the applicant company, the foreign holding component, if any in the equity of the Indian shareholder companies of the applicant company, will be duly reckoned on a pro-rata basis, so as to arrive at the total foreign holding in the applicant company. Clause F states that it is obligatory on the part of the company to take prior permission from the MIB before effecting any alteration in the foreign shareholding patterns and the shareholding of the largest Indian shareholders," the release stated.
Though NDTV gave no particular reason for issuing this notice, company’s director Narayan Rao assured indiantelevision.com today evening that NDTV would do nothing to flout or breach any guidelines.
“This notice had been put up earlier also, including NDTV site, as part of a stipulation for our IPO,” Rao said. He also did not cite any particular reason for the BSE notice, including the fact whether FII investments through daily buying and selling could have taken the FDI limit beyond 26 per cent.
According to the release, "The company states that persons resident outside India including FIIs, NRIs and companies in which there is majority ownership and control by persons resident outside India cannot buy or sell or trade or deal in the shares of the company."
The company, the release said, reserves its right to rectify the register of members as and when any breach comes to the notice. "The company will take due action in this regard only on the basis of data made available to them by the Registrars from the share transfer related documentation and no other mode," the release added.
