MCA Takes Cognizance of The SEBI Interim Order Against ZEEL

On Friday, the Ministry of Corporate Affairs (MCA) took cognizance of the SEBI interim order against ZEEL as per the report of ET Now. According to MCA, the inspection of books has not yet been ordered, and the agency is looking into allegations of regulatory violations against ZEE Entertainment.

Ankur Mishra of ET Now says to tell why the SEBI chairperson herself is going to hear the father-son duo in the case and whether the Zee-Sony merger will get delayed because of this case.

The Securities Appellate Tribunal affirmed SEBI's interim judgment against MD and CEO Punit Goenka and Chairman Emeritus Subhash Chandra Goenka. In response to allegations of financial siphoning and round-tripping, SEBI issued an interim order on June 12 prohibiting the Goenkas from holding directorship or key management roles in any listed firm or its subsidiaries.

Punit Goenka, chief executive of Zee Entertainment, and Subhash Chandra, chairman of Zee Group, filed an appeal on 10 July against a Sebi ruling that prohibited them from serving on the boards of publicly traded firms. The SAT denied their appeal. Due to allegations of financial vandalism, Sebi has forbidden the father-son tandem from holding any key leadership positions in any listed firms. Chandra and Goenka were accused of abusing their positions for financial advantage, according to Sebi.

ET Now reported that SEBI chair to hear Goenka, and Chandra in ZEE Saga and promoters of the company are to reply to alleged irregularities. According to the sources, SEBI Chairperson to pass the final order and according to SAT higher or WTM-PAR officer to hear the case.

On Friday, the shares of Zee Entertainment opened at Rs 234.90 apiece and while writing this copy the scrip was trading at Rs 228.05 with a downside gap of 2.50% over the previous close of Rs 233.90.