Shares of New Delhi Television Ltd (NDTV) fell 2.6 per cent on Friday after the company said that it had received a notice from the Enforcement Directorate (ED) on alleged violation of the provisions of the Foreign Exchange Management Act (FEMA).
The shares closed at Rs.85.75, after touching an intra-day low of Rs.82.20, a loss of almost 7 per cent compared with Thursday’s close of Rs.88.
In a filing to the stock exchanges, the company said it has been advised “that the allegations of the contraventions of provisions of FEMA in the show cause notice are not legally tenable” and that it will reply to the notice within due course of time.
According to the filing, the ED has sent a notice to the company along with executive co-chairpersons Dr. Prannoy Roy & Radhika Roy, executive vice chairperson K.V.L. Narayan Rao and NDTV Studios Ltd. (erstwhile subsidiary of the company).
The shares of the media company lost ground even as the benchmark indices gained marginally. The 30-share Sensex gained 26.57 points to 25,868.49 points. The broader Nifty of the National Stock Exchange (NSE) closed at 7,856.55, up 13.80 points.
Shares of Jindal Steel and Power Ltd (JSPL) gained 7.2 per cent to Rs.87.50 on speculation that the Competition Commission of India (CCI) had cleared the company over allegations of cartelisation. In a filing to the stock exchanges, the company said it had not received any such communication from CCI.
In February, the company had won bids for three coal mines that were cancelled in March.
There was much action in the JSP counter as a total of 54.33 lakh shares were traded on BSE, as against the two-week averageof 12.03 lakh.
Overall market breadth was positive with 1,464 gainers on BSE, against 1,190 losers.
