Sebi to issue corrigendum on summons issued to Zee founder Subhash Chandra

The Securities and Exchange Board of India on Wednesday submitted before the Bombay High Court that it might issue a corrigendum to the summons issued to Zee Entertainment Enterprises’ founder Subhash Chandra in alleged fund diversion case.  The market regulator also said that it would not take any subsequent action for three weeks.

The market regulator’s statement comes in a response to the petition filed by Chandra alleging that the summons issued by Sebi is effectively a show cause notice and contains “conclusive” allegations.

 

The Bombay HC granted Sebi two weeks to file a reply. Chandra has filed a writ petition before the court against the Sebi summons. A counsel appearing for the company argued that media leaks against the company founders are causing prejudice to Zee’s public shareholders. The court orally directed that Sebi should take due care and caution in this regard.

 

Separately, Chandra has appealed before the SAT against the Sebi’s confirmatory order of August 2023. The order restrains Chandra from taking any key managerial position in his group companies.