In an interim order on Monday, Sebi asked ZEEL to place this direction before its board within 7 days from the date of receipt.
ZEE Share Price Today: Zee Entertainment shares plunged more than 6 per cent on Tuesday, a day after the market regulator Securities and Exchange Board of India (SEBI) barred chairman Subhash Chandra and CEO Punit Goenka from holding any key managerial positions.
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The order came after a SEBI investigation found that the father-son duo abused their positions as directors/KMPS of a listed company for siphoning off funds.
Zee share price declined as much as 6.28 per cent in early trade to hit an intraday low of Rs 182.60 apiece on the BSE.
In an interim order on Monday, Sebi asked ZEEL to place this direction before its board within 7 days from the date of receipt.
The regulator also gave both, Subhash Chandra and Punit Goenka, 21 days of time to file their reply or objections if any in the case.
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The interim order comes at a time when the company is in the process of a merger with Sony Pictures Networks India and is seeking regulatory approvals for it.
Last month, the National Company Law Appellate Tribunal (NCLAT) gave a relief to ZEE by setting aside an NCLT order directing the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) to review their initial approvals to the Zee-Sony merger.
The NCLAT had set aside the earlier NCLT order for ‘violation of principles of natural justice’, saying that Zee should have been heard and has remitted the case back to NCLT.
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Zee-Sony Merger
On May 11, the National Company Law Tribunal (NCLT) had asked BSE and NSE to reconsider Zee’s proposed merger with Sony Pictures Networks India in the light of the Shirpur Gold Refinery fund diversion case. However, National Company Law Appellate Tribunal (NCLAT) set aside the NCLT order.
The next hearing in NCLT is scheduled for June 16.
As of now, Goenka is slated to be the MD and CEO of the merged company, as per the scheme of arrangement. With SEBI’s order, this becomes a key roadblock for the merger.
Zee share price has fallen nearly 18 per cent in the last one year.
