Zee Entertainment’s stock fell as much as 1.1% today after the Securities Appellate Tribunal (SAT) asked capital markets regulator SEBI to file an answer in the Zee Entertainment case by September 4, 2023, refusing to give the former punit Goenka to grant temporary relief to ZEE-CEO. The matter is scheduled for hearing on September 8, 2023.
The stock opened a gap to the upside at ₹267.95, from ₹266.20 during the previous closing session, and rose to an intraday high of ₹268.20. The stock is currently trading below a 52-week high of ₹290.50 hit on August 10, 2023.
The Securities and Exchange Board of India (SEBI) issued an “injunction” against Subhash Chandra and Punit Goenka on June 12, 2023, barring them from holding the position of director in any listed company or its subsidiaries pending further orders clothe
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After the company appealed to the Court of Appeals, SAT issued an order on July 10, 2023, stating it saw no “reason to intervene in the order being appealed.” The SAT also dismissed the appeals and directed the appellants to file a reply or objection along with a motion to vacate the restraining order.
Following the SAT order, the company filed written responses on July 24, 2023. Meanwhile, SEBI filed an “other motion” with the Court of Appeals seeking clarification regarding the appointment of the quasi-judicial authority.
On July 27, SAT directed SEBI to appoint another WTM. “If no WTM is available, any authorized officer of higher grade, rank or position than the WTM would hear and decide the matter,” SAT said.
Zee was then granted an opportunity for a personal interview and certain additional information was obtained. On August 8, 2023, the Zee initiators submitted their responses on the matter.
Zee supporters have dismissed the comments made against them in the SEBI injunction, saying the injunction must be overturned because it relied on information gathered during the settlement process, which was contrary to what was set out provisions of the SEBI.
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“The injunction must also lapse as reliance was placed upon passage of the injunction in the Shirpur Gold Refinery Ltd. matter in which the companies were not party without notice being given to the companies and without an opportunity to Hearing was given.” the Entities,” reads the filing from Zee promoters.
It also said there was no documentary evidence that the fund transactions were mere sham transactions without any consideration.
Meanwhile, SEBI issued another order earlier this month barring Goenka and Chandra from the boardrooms of four Zee Group companies – Zee Entertainment, Zee Media Corporation, Zee Media Corp and Zee Aakash News.
The case against them relates to SEBI’s investigation following the resignation of two independent directors (Sunil Kumar and Neharika Vohra) of Zee in November 2019 following concerns raised over several issues, including ZEEL’s appropriation of certain fixed-term deposits (FDs). yes bank ltd Yes Bank) to redeem loans from affiliated companies of the Essel Group. SEBI claimed that Chandra and Goenka were the “direct beneficiaries” of the alleged money diversion and that both had abused their position by diverting funds for their own benefit.
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