 "Zee constitutes interim panel following Sebi's bar on Goenka")
Zee Entertainment Enterprises (Zee) on Monday announced that the company’s board has constituted an interim committee to “ensure smooth operations.”
This comes after the media major failed to obtain any relief from the Securities Appellate Tribunal (SAT) against an interim order passed by the Securities and Exchange Board of India (Sebi), debarring founders Subhash Chandra and Punit Goenka.
“The interim committee will be under the supervision of the board and will seek its guidance on all matters pertaining to the company. The board continues to have immense faith in the value-building leadership skills showcased by Punit Goenka and will monitor the progress of the matter,” said the company in a statement.
Shares of Zee Entertainment closed at Rs 230, up over 6 per cent, extending the two-day lead to 15 per cent.
Zee’s statement didn’t categorically mention whether Goenka has relinquished his position on the company’s board and management to fulfil the directions passed by Sebi. Goenka serves as the managing director (MD) and chief executive officer (CEO) of Zee.
Last week, the SAT had dismissed the appeals filed by the father and son duo against the interim order by Sebi, barring them from holding key managerial positions and directorships at any listed firm.
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While observing that there was no irregularity in Sebi’s order, the tribunal — in its order dated July 10 — had directed Zee promoters to file a response to the markets regulator within two weeks.
The tribunal had also asked Sebi to fix a date for hearing within a week from the filing of replies by the duo and pass an appropriate order within two weeks after giving the opportunity of hearing. However, the investigation will be done by a different whole-time member of Sebi to remove any bias.
In the matter pertaining to the merger between Zee and Sony Pictures Network India, the National Company Law Tribunal (NCLT) had reserved its order on July 10 and the pronouncement is awaited.
Sebi is investigating the alleged involvement of Chandra and Goenka in siphoning off funds from Essel-group firms and round-tripping of money through related parties.
The matter relates to a letter of comfort granted by Chandra for appropriation of a fixed deposit of Rs 200 crore, allegedly against the approval of the Zee board.