As per media reports, Zee has written to the regulator that the investigations create ‘prejudice for the company and shareholders’
The Zee-Sony merger could be affected by repeated investigations being conducted by Sebi, Zee has said as per media reports.
Zee has written to the markets regulator that continuous probes create “prejudice for the company and shareholders”.
Last week, the Securities Appellate Tribunal (SAT) denied interim relief to Essel Group Chairman Subhash Chandra and son Punit Goenka, CEO of Zee Entertainment Enterprises, against a Sebi order they were challenging.
The market regulator has barred the duo from holding any directorial or managerial position for a year as an action against the two for “siphoning off funds from the listed entity for their own benefit”.
Sebi in its reply to SAT said that urgent action against ZEEL promoters is warranted in the alleged fund diversion case to safeguard the management, investors and stakeholders.
It also termed ZEEL’s applications as “false and misleading.”
“We have a situation before us where the chairman emeritus and the MD and CEO of this large listed company are involved in a myriad of different schemes and transactions through which vast amounts of public money belonging to listed companies are diverted to private entities owned and controlled by these persons. The appellant’s conduct is telling in this regard. Not only have there been violations but also the issuance of multiple false disclosures and submission of statements to cover up such wrongdoings,” Sebi said to SAT in a 197-page affidavit.
