Goenka, Chandra may move SAT over Sebi ban this week
Zee Entertainment Enterprises Ltd, Punit Goenka, are gearing up to challenge an interim directive of the Securities and Exchange Board of India (Sebi). The Sebi directive restrains the duo from holding directorship positions in any publicly listed firm, over allegations of fund diversion. A petition against Sebi’s 14 August order is expected to be filed with the Securities Appellate Tribunal (SAT) either on 17 or 18 August, according to two people, seeking anonymity.
They are seeking to get the order quashed or secure a stay, they added. On Monday, Sebi upheld its 12 June order preventing the father-son duo from occupying any key positions or directorial roles in Zee Entertainment or any listed firm over allegations of fund diversion of ₹2,000 crore from Zee Entertainment (involving group firms as well as associate entities in 2019). “If the investigation by Sebi, which pertains to a 2019 case, is not complete yet and takes eight more months, a ban on the individuals does not hold any ground," said one of the two people cited above.
“First, the order was passed hastily without proper investigation or hearing, merely days before the tribunal’s pending approval for the merger. Two, the case does not pertain to any kind of stock price manipulation or unfair gains made from the market. So, it is unfair that they are banned from holding key management positions or directorships.
It could be done only if a thorough investigation is concluded and the veteran corporate leader of a publicly held company is found guilty officially. He can be debarred if adequate evidences are found and if a court of law agrees with such findings. Otherwise, this interim ban order is like pronouncing two individuals guilty without having proof of
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