Mumbai: Dish TV India has once again been fined by both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The penalty comes for not keeping its board strong enough and failing to meet the required quorum. This is not the first time - the company was fined in 2023 and 2024 for the same reason.
Latest notice for June quarter
According to a regulatory filing, Dish TV received a fresh notice on August 29. The bourses imposed a fine for non-compliance with SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations 17(1) and 19(1)/(2) for the quarter ending June 30. These rules ensure companies have a proper number of directors and committees in place.
Company blames shareholder rejection
Dish TV explained that the board shortage happened because shareholders did not approve new directors. The company said the issue was beyond its control. Shareholders have earlier rejected many board-related proposals, including the re-appointment of Jawahar Lal Goel as managing director in 2022 and adoption of financial results for 2020-21 and 2021-22.
Details of penalty and compliance
Both NSE and BSE have fined Dish TV Rs 5.69 lakh each, totalling Rs 11.38 lakh, to be paid within 15 days. The company confirmed it would pay the amount and clarified that the fine will not affect its business, finances, or operations apart from the penalty itself. The exchanges also directed the company to inform its promoters about the non-compliance and put the issue before the board in the next meeting.
Board strength and promoter tussle
As per its official website, Dish TV’s board currently has seven members, including Chairperson-CEO Manoj Dobhal, four independent directors, the CFO, and the company secretary. However, there has been an ongoing tussle at the board level. Subhash Chandra’s family-led promoter group holds about 4 percent stake and has clashed with YES Bank earlier over board control. Recently, YES Bank sold its 24.2 percent stake in Dish TV to JC Flowers Asset Reconstruction Pvt Ltd.
