BSE And NSE Impose Fines On Dish TV Over Lack Of Board Strength
Dish TV said it will inform its promoters about the current situation and the fine imposed by the bourses.
Bombay Stock Exchange and National Stock Exchange have imposed penalties on DTH operator Dish TV over composition and lack of quorum for its Board meeting, according to a regulatory filing by the company.
The company which is facing a prolonged tussle between the Subhash Chandra-led promoter family and its earlier largest shareholder Yes Bank Ltd., said the fines amount to Rs 2.75 lakh.
The company has received the notices, imposing fines on August 21, 2023, said Dish TV in a regulatory filing on Tuesday adding "it will be making the payment of the fines and shall also be submitting waiver applications with the Stock Exchanges."
"The fines have been imposed on the Company for non-compliance of Regulation 17(1) and 17 (2A) of Listing Regulations, pertaining to the composition of the Board and quorum of Board meeting, for the quarter ended June 30, 2023," it said.
The non-compliance in respect to the reduction in the board strength was primarily on account of non-approval of shareholders for the appointment of directors, which was beyond the control of the board or the company, the Direct-to-Home operator added.
The National Stock Exchange has imposed a total fine of Rs 1.5 lakh, while BSE has imposed a fine of Rs 1.25 lakh for violation of Regulation 17(1) and Regulation 17(2A).
Moreover, Dish TV said it will inform its promoters about the current situation and the fine imposed by the bourses.
"The Company has also been advised to inform the Promoters about the aforesaid non-compliance and to place the said communication before the Board at its next meeting and the comments made by the Board shall be informed to the exchange," it said.
Further, it has also been advised to comply with the bourses' direction and pay the fines including GST, within 15 days from the date of the stock exchange communication.
Last year also, bourses imposed a penalty on Dish TV.
Subhash Chandra's family-led promoter and promoter group holds a mere 4.04%t share and is in a tussle with YES Bank over the reconstitution of the board.
YBL, which was Dish TV's largest shareholder until it recently sold its 24.2% in the company to JC Flowers Asset Reconstruction Pvt Ltd.
Over the past few occasions, Dish TV shareholders have jostled down the company's proposals to approve the new appointments on the board in the EGM.
On three previous occasions, shareholders had rejected several proposals including re-appointment of Jawahar Lal Goel as Managing Director in June 2022 and the adoption of financial statements for 2020-21 (Apr-Mar) and 2021-22 in September 2022.