After denial of security clearance to 33 television channels of Kalanithi Maran’s Sun TV Network by the Ministry of Home Affairs, the group has faced a deep crisis in the stock market.
The network has lost more than a quarter of their value within a day’s trading in the fear of the channels being going off air after the Home Ministry has denied its security nod.
On the Bombay Stock Exchange (BSE), the shares fell to 22 per cent and were trading at Rs. 267.30 in the morning. Maran, who owns 29.556 crore shares in the network, lost Rs. 2,289.11 crore of his wealth.
SL Narayanan, CFO, Sun TV Network group, stated, “The shares collapsed in the morning and started recovering.” But the shares closed at Rs. 278.90, against its previous close of Rs. 356.35.
According to the sources, the MHA had discarded a proposal of the Information and Broadcasting Ministry (I&B) to provide the clearance. The decision seems to have been influenced by the criminal cases that the Marans are facing from the CBI and the Enforcement Directorate (ED). Last September, the Madras High Court set aside an order of the I&B Ministry cancelling the Multi System Operator license to Kal Cables, a subsidiary of the Sun TV Network.
Industry sources doubted if the firm’s licenses could be cancelled as they were due for renewal only between 2021 and 2023. But some legal experts say the Home Ministry can recommend cancellation of licenses midway.