Why BSE and NSE have penalized Dish TV again
What's the story
Leading stock exchanges BSE and NSE have imposed a fine of approximately ₹11.38 lakh on Dish TV for not having the required number of directors on its board. The company has been in a board-level tussle for the past few years, which led to non-compliance with SEBI's listing regulations. This is not the first time Dish TV has faced such penalties; it was fined by these bourses in 2023 and 2024 for similar reasons.
Company statement
Dish TV to pay fines
Dish TV acknowledged the penalties in a regulatory filing, saying it would pay the fines imposed by BSE and NSE. The company clarified that these non-compliances were due to shareholders not approving new director appointments, which was beyond its control. It also said that these issues have not affected its financial or operational activities apart from the monetary penalty payable.
Board structure
Current board composition and promoter group stake
Dish TV's current board comprises seven members, including its Executive Director-Chairperson-CEO Manoj Dobhal, four independent directors, a CFO, and a company secretary. The company's promoter group holds about 4% stake and has been embroiled in a dispute with Yes Bank over board reconstitution. Notably, Yes Bank had sold its 24.2% stake in Dish TV to JC Flowers Asset Reconstruction Pvt Ltd earlier this year.
Past rejections
Shareholder rejections of board appointments
Dish TV's shareholders have previously rejected the firm's proposals to approve new board appointments in the Extraordinary General Meeting (EGM). In June 2022, they had rejected Jawahar Lal Goel's re-appointment as managing director. They also rejected the adoption of financial statements for FY 2020-21 and FY 2021-22 in September 2022. These incidents highlight ongoing challenges within Dish TV's corporate governance structure and shareholder relations.