ZEE board forms advisory panel to curb ‘erosion of investor wealth’

livemint.com:

NEW DELHI : ZEE Entertainment Enterprises Ltd is establishing an advisory committee to help it protect the interests of stakeholders amid what it said were misinformation and rumours resulting in negative public opinion about the company. “The board 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," the company said in a statement on Friday. The committee will be presided by Satish Chandra, a former judge of the Allahabad High Court, and will comprise two independent directors of the company, Uttam Prakash Agarwal and P.

V. R. Murthy.

“The committee will independently provide guidance on the measures and future course of action that the board is required to take in order to protect the interests of all the stakeholders of the company," Zee said. Over the past few weeks, according to media reports, the Securities and Exchange Board of India has unearthed a financial discrepancy exceeding $240 million, or around ₹2,000 crore, in the accounts of Zee Entertainment Enterprises. This amount is nearly 10 times more than what Sebi investigators had initially estimated.

The development came shortly after the collapse of Zee’s proposed merger with Sony Group Corp’s India unit. Further, Zee also had to issue a clarification denying reports of restarting discussions with Sony group to revive their $10-billion merger that was terminated on 22 January. In a regulatory filing to the stock exchanges earlier this week, Zee said it was not involved in any further merger negotiations