Sun TV surges 8% after AG backs grant of security clearance

Shares of Sun TV Network soared almost 8 per cent on Friday after Attorney General (AG) Mukul Rohatgi supported grant of security clearance to 33 channels of the Kalanithi Maran-promoted firm.

Following this, the stock jumped 7.86 per cent to settle at Rs 333.55 on BSE. In intra-day, it surged 10.68 per cent to Rs 342.30. On NSE, it climbed 7.88 per cent to Rs 333.90.

The company's market value rose Rs 957.69 crore to Rs 13,144.69 crore.

The AG has supported grant of security clearance, saying the corruption cases being investigated against the network's promoter cannot be the ground to deny permission.

The Information and Broadcasting Ministry had recently approached the Law Ministry to seek the opinion of the top law officer on the issue after the Ministry of Home Affairs (MHA) denied security clearance to the network.

In his opinion, the Attorney General has said security clearance can be granted as agencies are probing cases related to corruption, and not security. Hence, he added, corruption cases cannot be the ground to deny security clearance.

The I&B Ministry issues broadcasting licences for which companies require a security nod from MHA.

The ministry had earlier been informed about the decision of the Home Ministry denying security clearance to the TV network, which is believed to have been influenced by pending corruption cases against Maran and his brother, former Union Minister Dayanidhi Maran.

The 30-share Sensex settled at 27,316.17, up 200.34 points.