Dish TV penalised by BSE, NSE for lacking board strength

New Delhi, Aug 22 (PTI) Direct-to-Home operator Dish TV has been fined Rs 12.74 lakh by BSE and NSE for lack of quorum on its board, according to a regulatory filing by the company.

Earlier also, Dish TV had received notices from the bourses on February 22, 2024, and August 21, 2023, imposing fine over lack of proper strength on the board.

The latest notice dated August 21, 2024 is for not having proper composition of the Board and Nomination and Remuneration Committee, for June quarter 2024, it added.

According to the company, the non-compliance “in respect to reduction in the board strength was on account of non-approval of shareholders for the appointment of directors and that the same was beyond the control of the board or the company”.

Both NSE and BSE have fined Rs 6.37 lakh each for violation of listing rules.

“The fines have been imposed on the company for noncompliance of Regulation 17(1) and 19(1)/(2) of Listing Regulations, pertaining to the composition of the Board and Nomination and Remuneration Committee, for the quarter ended June 30, 2024,” it said.

Dish TV said it shall be making the payment of the fines and that it would have no impact on financial, operation or other activities of the company.

Moreover, the company has been advised to inform the promoters about the non-compliance and to place the communication before the board at its next meeting and the comments made by the board shall be informed to the exchange, it said.

As per the information available on the Dish TV portal, its board consists of six persons — Chairman Manoj Dobhal, two independent directors, CFO, CEO and company secretary of the company.

Subhash Chandra’s family-led promoter and promoter group hold a mere 4.04 per cent share and is in a tussle with YES Bank over the reconstitution of the board.

YBL, which was earlier Dish TV’s largest shareholder has sold its 24.2 per cent in the company to JC Flowers Asset Reconstruction Pvt Ltd.

In the past, 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 and 2021-22 in September 2022.