The National Company Law Tribunal (NCLT) has instructed India’s two national stock exchanges to “reassess” their approvals for the merger of Zee Entertainment and Sony Pictures Networks India.

What Happened? The company law tribunal has asked the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) to rethink their initial approvals for the merger and issue updated no-objection certificates before the next hearing, slated for June 16.

The NCLT has asked the bourses to reassess and validate the merger’s non-compete clause, which had previously been greenlit by both the exchanges and the Securities and Exchange Board of India (SEBI). The stock exchanges will also review whether the payment method for the non-compete fee between two Mauritius entities complies with SEBI policies.

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The directive comes after SEBI asked the two stock exchanges to inform the NCLT of a ruling against a promoter entity of Essel Group, the founder of Zee. The obstacle to the deal also comes days after the NCLT dismissed a plea by IDBI Bank to initiate insolvency proceedings against the media firm.

Other creditors of Zee have also opposed the merger scheme.

Price Action: Shares of Zee shed 0.86% to trade at ₹184.20 in the early hours of Tuesday.

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