SEBI Bars Zee Entertainment’s Top Management from Taking Managerial Positions in Any Company
India’s market regulator, SEBI, has barred Zee Entertainment’s Chairman, Subhash Chandra, and CEO, Punit Goenka, from taking any important managerial positions in any company. Both have been found guilty of investing Zee Entertainment’s money elsewhere. The news has impacted Zee Entertainment’s share price, which fell by over 6% to INR 182.60. However, it has recovered slightly and is currently trading at INR 193.35, down by 0.77%. The company has stated that it is reviewing SEBI’s order and will take the next step after seeking legal advice.
Background of the Case
SEBI alleges that Zee Entertainment’s share price fell from INR 600 in 2019 to INR 200 in 2023, despite the company making a profit. Promoter’s stake in the company also fell from 41.62% to 3.99%. SEBI claims that Chandra and Goenka diverted funds from Zee Entertainment to their allied companies. The regulator has also mentioned that there is no process in place to address the poor management of Zee Entertainment.
Impact on Zee-Sony Merger
Zee Entertainment is in the process of merging with Sony. However, the recent order by SEBI may impact the merger as Chandra and Goenka will not be able to hold any managerial positions. This development can be a roadblock for the proposed merger. The case is also pending in NCLT, and the hearing is scheduled for June 16.
IIAS’ Take on the Order
According to Hetel Dalal of Institutional Investor Advisory Services (IIAS), the order can result in two possibilities. One is that the Zee-Sony merger may face a delay. The second possibility is that Sony may react to this order and take appropriate action.
Conclusion
SEBI’s order has come as a shock to Zee Entertainment, and it will be interesting to see how the company responds. Meanwhile, the market is watching the developments closely, and investors are advised to be cautious.
Follow DelhiBreakings on Google News
Superfast News Coverage by DelhiBreakings.com team.
For Superfast national news and Delhi Breaking Stories visit us daily at https://delhibreakings.com
