Goenka can’t take key roles as Sebi upholds Jun order
Mumbai: The Securities and Exchange Board of India (Sebi) on Monday upheld its 12 June interim order restraining Punit Goenka and his father, Subhash Chandra, from holding key positions in publicly traded companies till further notice. Sebi’s order barred them from holding key positions in an alleged funds diversion case.
The order said Goenka and Chandra were involved in schemes and transactions through which vast amounts of public money belonging to Zee Entertainment Enterprises Ltd were diverted to private entities owned and controlled by these people. Refusing relief, Sebi chairperson Madhabi Puri Buch said: “The two noticees shall not hold a position of a director or a key managerial position in Zee group entities.
The investigation in the matter by Sebi shall be completed in a time-bound manner and, in any event, within eight months from the date of this order." Referring to Zee’s merger with Sony Pictures Networks India (Culver Max Entertainment), Buch clarified that the duo would also not be allowed to hold key positions in a resultant company that is formed pursuant to a merger of the above-named companies with any other company, wholly or in part. “I note that a detailed investigation in the matter is in progress which may bring out additional acts of omission or commission of the entities, if any, in detail, depending on the material and after considering the facts and veracity of their submissions.
The findings in the extant order are prima facie findings in a matter under investigation", Buch said in a 91-page order. The verdict is a setback to the Goenkas, especially after the Mumbai bench of the National Company Law Tribunal, in its order on Friday, approved the long-pending merger of Zee with Sony,
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