LI Network
Published on: October 31, 2023 at 11:28 IST
Shares of Zee Entertainment saw a more than 1 percent increase in trading on Monday following a decision by the Securities and Appellate Tribunal (SAT) to set aside the Securities and Exchange Board of India (SEBI) order that had banned Punit Goenka from holding key managerial positions.
On Monday, SAT ruled in favor of Punit Goenka, the former Managing Director and CEO, overturning SEBI’s order that prohibited him from occupying key managerial roles in Zee and other companies.
Additionally, SAT instructed Goenka to cooperate with SEBI’s investigation.
The SEBI order, issued in August, had directed its investigative officials to conclude the inquiry within eight months. It also prevented ZEEL’s former directors, Subash Chandra and Goenka, from holding key managerial positions until the investigation was completed, as reported by various media outlets.
According to SEBI Chairman Madhabi Puri Buch’s August order, the interests of entities Subhash Chandra and Punit Goenka were in direct conflict with those of public shareholders and the company.
The order highlighted that these entities had actively attempted to conceal acts that had caused a loss of at least Rs 143.9 crore to public-listed companies, including Zee Entertainment Enterprises.
SEBI’s concern was that allowing these entities to remain in positions of influence would compromise the fairness and completeness of the ongoing investigation.
It’s worth noting that SEBI had also issued a confirmatory order related to Subhash Chandra, Chairman Emeritus of Zee Entertainment, expressing apprehension about his potential impact on a fair and transparent investigation.
