Curbs don’t apply to NDTV bid: Adani

The Adani Group’s takeover bid for New Delhi Television (NDTV) seems to be headed for a legal tussle. Rebutting the media firm’s stand that the transfer of shares by it can happen only after Sebi’s approval, the Adani Group on Friday said that such regulatory nods were not required and NDTV’s stand was “legally untenable and devoid of merit”.

Several legal experts who FE spoke with endorsed the Adani Group’s statement. They pointed out that the takeover is by exercising the right to convert the warrants into equity, which is a contractual obligation on part of NDTV. Any injunctions put by Sebi on NDTV promoters – Radhika Roy and Prannoy Roy – from dealing in securities markets till November this year do not in any way touch upon such contractual agreements which predate the injunction, they said.