SEBI bars Subhash Chandra, Punit Goenka from holding director’s position in listed Cos

In an interim order, the Securities and Exchange Board of India (SEBI) has barred Subhash Chandra, Chairman, Essel Group, and Punit Goenka, MD and CEO, Zee Entertainment Enterprises Ltd (ZEEL), from holding position of Director and any key managerial position in any listed company.

SEBI passed the order after investigations were carried out by the regulator, which revealed that both Subhash Chandra and Punit Goenka had abused their position as Directors and had siphoned off funds in 2019 for their own benefit. SEBI stated that this was done in a planned manner.

It may be noted here that while the promoter family holds 3.99 per cent of the shares in Zee Entertainment Enterprises, both Subhash Chandra and Punit Goenka continue to be at the helm of affairs of the media house.

Chandra and Goenka have 21 days to respond to SEBI’s interim order.

Meanwhile, in an official statement issued, R Gopalan, Chairman, Zee Entertainment Enterprises, stated, “The Board of Directors of Zee Entertainment Enterprises Ltd. (ZEEL) has noted the interim ex-parte order issued by the Securities and Exchange Board of India (SEBI), with respect to Dr Subhash Chandra and Mr Punit Goenka.”

He further added that 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.

“With a singular focus on enhancing the shareholder value year after year, the Board of the Company has continued to guide the management towards its strategic goals and priorities for the future. All the appropriate steps will be actioned as necessary, in order to ensure that the interest of the Company and all its valuable shareholders is kept at the forefront,” Gopalan said in the statement.

He added, “The Board recognises the significant contribution made by Dr Subhash Chandra as the founder of the Company and the growth and value generation centric leadership showcased by Mr Punit Goenka. The Board is confident that the Company will continue to achieve the set goals for the future and most above, create value for all stakeholders.”