Zee forms independent advisory panel to curb erosion of investor wealth

Zee Entertainment Enterprises Ltd on Friday said its board has constituted an independent advisory committee headed by Satish Chandra, retired judge of Allahabad High Court, to curb erosion of its investor wealth in the wake of speculations, leading to negative public opinion of the company.

Earlier this week, media reports said market regulator Sebi has found financial discrepancies in the accounts of the company, although it asserted that the reports-related accounting issues are "incorrect and false".

"The board of ZEE Entertainment Enterprises Ltd (ZEEL), has approved to constitute an independent advisory committee that will enable it to review and take cognizance of the widespread circulation of misinformation, market rumours, and speculation that has led to the formation of negative public opinion about the company and consequent erosion of investor wealth," ZEEL said in a statement.

The committee will be presided by Dr Satish Chandra, a former judge of Allahabad High Court.

The committee also have two Independent Directors of the company -- Uttam Prakash Agarwal, and P V R Murthy -- as members, it added.

The committee will independently provide guidance on the measures and future course of action that the board is required to take to protect the interests of all stakeholders of the company, ZEEL said in a statement.

"The board will seek expert guidance of the committee on the aforementioned matters from time to time," it added.

In the February 16-23 week, ZEEL shares declined 5.5 per cent on the BSE.

The market capitalisation of the company declined Rs 979.73 crore to Rs 16,645.80 crore during the period.

However, on Tuesday, shares of ZEEL settled 8 per cent higher amid reports that the company and Sony Pictures Networks (India) were working to salvage their USD 10 billion merger that was terminated in January.