SEBI Asks Dish TV To Disclose AGM Results
The disclosure has already been delayed by 37 days, says SEBI.
The market regulator has asked Dish TV (India) Ltd. to disclose the results of its annual general meeting held on Dec. 30.
On Feb. 9, Dish TV received an advisory letter stating that as per the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, every the listed entity is mandated to submit the voting results two days after the AGM concludes, according to the regulator’s advisory letter enclosed with an exchange filing.
The disclosure, the Securities and Exchange Board of India said, has already been delayed by 37 days.
This stems from Yes Bank Ltd. in January approaching the Bombay High Court requesting it to direct Dish TV to disclose publicly the results of its AGM. It had also sought that the AGM results be given effect to by Dish TV.
The bank had made the request in an ongoing dispute with World Crest Advisors LLP—a promoter entity of Dish TV. These are all Essel Group companies, founded by Subhash Chandra. His brother Jawahar Goel is promoter and chairman and managing director of Dish TV.
The court will next take up the matter next for arguments later this month.
According to SEBI, even though there’s no prohibitory or restraint order by the Bombay High Court, Dish TV failed to comply with the legal requirement. Not revealing the AGM results, it said, affects the shareholders and investors the most.
Dish TV in response to SEBI’s advisory letter said, “Thus, very issue of declaration of results of the AGM conducted on Dec. 30, 2021 is in fact sub-judice before the High Court, which has taken cognizance of the matter, and will be hearing the arguments of the parties shortly, and issue its decision.”
The Dispute
In 2019, Essel Group entities defaulted on payment of Rs 5,270 crore in loans given by Yes Bank. That prompted the bank to invoke a pledge on 47.19 crore Dish TV shares and became an owner of a 25.63% stake in the direct-to-home service provider.
In 2021, Essel Group entity World Crest filed a suit in the Bombay High Court against Yes Bank and Catalyst Trusteeship Ltd.—a securities trustee—claiming it is the owner of over 44 crore equity shares of Dish TV which are currently held by Yes Bank in its demat account.
The Bombay High Court, on Dec. 23, said the results of the AGM will abide by the decision of the interim application in World Crest’s suit.