DishTV clarifies on corporate governance breach, calls minority investors allegations ‘baseless’; stock ends 10% up

Noida-based satellite television provider, DishTV on Wednesday denied allegations related to corporate governance breach. Also, the company called minority investors’ allegations regards to same as ‘baseless’ and informed them that it is in the process to submit its reply. DishTV is in focus ahead of its extraordinary general meeting where it seeks approval from shareholders over the appointment of four directors. On BSE, DishTV’s share price rallied.

Stock exchanges sought clarification from DishTv over a CNBC-TV18 report that claimed that the company’s minority shareholders allege a breach in corporate governance.”

DishTV had received a query from the said media channel along with the stock exchanges over the Complaint made by Minority Investors Association.

DishTV has clarified the same!

In its regulatory filing, DishTV said, “even before the Company could respond on the same, CNBC-TV18, without waiting for our comments, unilaterally issued a news article on March 1, 2023, at 1308 Hrs on its platform.”

In regards to the content of the communication of the Minority Investors Association, DishTV said, “at the outset it is submitted that all the allegations made out in the letter are wrong, malicious, incorrect, and baseless and hence are denied.”

The company added, “The reason/intention behind the same can be nothing else but to cast aspersions on the conduct of the Company by giving undue media coverage. We also believe that the same may have an impact on the e-voting going on for the items being placed before the shareholders at the ensuing Extra Ordinary General Meeting of the Company scheduled to be held on March 3, 2023.”

Also, DishTV said, the allegation by the Minority association is “baseless and the Company is in the process to submit its reply to the same.”

Further, NSE has advised DishTV to provide its response by or before March 6, 2023, which response shall be submitted accordingly. 

DishTV concluded, “it is important to note that the current composition of the Board is in line with the requirements of SEBI Listing regulations.”

According to the said media report, the Ministry of Information and Broadcasting (MIB) is known to have approved six names for appointment to the board of Dish TV on December 26, 2022, as proposed between Dish TV and Yes Bank.

Of the total six names, it is said to include three names proposed by Yes Bank — which as per the report include Arvind Nachaya Mapangada, Girish S Paranjpe, and Haripriya Padmanabhan.

As per the regulatory filing of DishTV, the company has already announced four names on its board for which the company will be seeking approval from its shareholders in the EGM on March 3rd.

Four names given by DishTV are — Sunil Kumar Gupta, Madan Mohanlal Verma, Gaurav Gupta, and Dr. Lalit Behari Singhal as the non-executive independent directors.

Last year, in December, the private sector lender Yes Bank invoked its shares of seven companies which included DishTV to JC Flowers ARC as part of its sale of stressed assets aggregating to 48,000 crore. The bank invoked about 44,53,48,990 equity shares or 24.19% of its total share capital in DishTV.

On Wednesday, DishTV’s share price closed at 15.26 apiece up by 9.78% on BSE. The company’s market cap is nearly 2,810 crore.

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