Zee Entertainment shares rise over 3% after SAT sets aside SEBI order against Punit Goenka
Zee Entertainment rose 3.6% to Rs 258 in Monday's trade on BSE after the Securities Appellate Tribunal (SAT) set aside market regulator SEBI's order barring Zee Entertainment's CEO Punit Goenka from holding key directorship in listed entities over an alleged fund-diversion case.
In an interim order, the Securities and Exchange Board of India (SEBI) in June restrained Essel Group Chairman Subhash Chandra Goenka and Goenka from board seats in any entity formed through the merger or amalgamation of the four Zee group companies. SEBI’s investigations showed that Chandra and Goenka abused their position as directors of Zee Entertainment in 2019 by siphoning off funds for their own benefit.
“Appellant (Goenka) will cooperate in the investigation.
In the event if something material comes up during the investigation, then appropriate procedures can be adopted by SEBI in accordance with law. We also make it clear that any observation made in this order is prima facie observation and will not influence the investigation nor will it be utilised by either of the parties,” the order read.
SEBI can appeal against SAT’s order in the Supreme Court.
Following this development, the scrip was trading 1.6% higher at Rs 253 on BSE at 12.24 p.m.
while the benchmark indices traded with gains of around 0.34%.
This likely paves the way for the completion of the merger between Zee Entertainment and Culver Max Entertainment (Sony Pictures India), creating a $10 billion media and entertainment powerhouse. The merger was announced in 2021 and has received requisite approvals from regulators, yet has been delayed due to legal controversies over loan defaults by a Zee group entity.
Japan's Sony Group, of which Sony Pictures is a subsidiary, had
