Order against ZEE promoters: SAT directs SEBI to respond to ZEE’s plea

After the Securities and Exchange Board of India (SEBI) gave an interim order imposing a ban on ZEE promoters Subhash Chandra and Punit Goenka, preventing them from holding directorial and key managerial roles due to allegations of funds siphoning, ZEE filed a petition challenging the order before the Securities Appellate Tribunal (SAT). According to reports, ZEE contended that SEBI’s order will impact the hearing on its merger deal with Sony before the National Company Law Tribunal (NCLT), which is scheduled for today (June 16, 2023). The NCLT hearing for the merger will also provide clarity on the exchange reassessment issue.

Following ZEE’s petition, SAT has asked SEBI to file its response within 48 hours.

ZEE’s counsel maintained that principles of natural justice hadn’t been followed in the case.

Earlier, in a statement issued, R Gopalan, Chairman, Zee Entertainment Enterprises, had stated, “The Board is currently in the process of reviewing the detailed order, and appropriate legal advice is being sought in order to take the next steps as required.”