Sharemasterindia.com: Sun TV shares fell as much as 6 per cent on Tuesday after Economic Times newspaper reported, citing sources, that the Prime Minister's Office has found merit in the Home Ministry's decision to deny the broadcaster security clearance for its 33 channels.
The issue of granting security clearance to Sun TV has divided the government, with the Information and Broadcasting Ministry and the Home Ministry taking opposite views.
Broadcasters such as Sun TV need a security clearance every 10 years in order to continue their operations. The Home Ministry wants to deny security clearance to Sun TV on the ground that its promoter Kalanithi Maran is being investigated for criminal cases.
The I&B Ministry is in favour of granting security clearance to Sun TV. On Friday, Attorney General Mukul Rohatgi backed the I&B Ministry and opined that denial of security clearance to Sun TV citing "economic security" was not legally tenable.
The Attorney General's opinion is not binding on the government, but it is generally accepted, analysts said.
Sun TV shares have been on a roller coaster ride as investors have reacted to news flow. On June 8, Sun TV shares crashed by as much as 28 per cent after the Home Ministry's decision to deny Sun TV a security clearance became public. The stock rebounded more than 10 per cent on Friday after the Attorney General's stand was known.
As of 09.33 a.m., Sun TV shares traded 3.2 per cent lower at Rs 322.70, underperforming the broader markets.
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