Subhash Chandra, Punit Goenka can't hold director position in group cos: Sebi

economictimes.indiatimes.com:

Securities and Exchange Board of India (Sebi) Monday said Essel Group founder Subhash Chandra Goenka and his son Punit Goenka cannot hold the position of a director in various group companies, including Zee Entertainment Enterprises (Zee), Zee Media Corp and the proposed merged entity between Zee and Sony Pictures Networks India (Sony), until the regulator concludes its investigation in the alleged fund diversion case against them. Sebi will complete its probe within eight months from Monday, it said.

This is a modified order to its June 12 directive that had barred both Chandra and his son from being a director in any listed company. The order issued Monday will impact Punit's directorship at the Zee-Sony merged entity.

The merger between Zee and the Indian unit of Sony was approved by the National Company Law Tribunal (NCLT) last week. The Zee stock has climbed more than 13% in the past five trading sessions after the NCLT approved its merger with Sony.

The bulk of the recent gains at Zee, which has a market capitalization in excess of ₹26,000 crore, is attributed to investor optimism that regulators would approve the merger. In a 91-page order signed by Sebi chairperson Madhabi Puri Buch, the regulator said that Zee promoters submitted that the regulator's June 12 directive that barred them from holding the position of a director of any listed company was «indefinite in terms of scope and time» and, hence, it decided to modify the order.