Zee Entertainment Enterprises aka ZEEL’s stock was volatile after an ET report stated that India’s Ministry of Corporate Affairs began an investigation into alleged irregularities that were highlighted by the Securities and Exchange Board of India (SEBI) in June.
The SEBI-ZEEL tussle timeline: On June 12, SEBI, the market watchdog, barred Subhash Chandra, chairman of Essel Group, and his son, Punit Goenka, from holding top management and director roles in any publicly listed company. The Securities Appellate Tribunal (SAT) was to continue hearing the appeal against this SEBI order.
SAT, on July 10, refused to halt the SEBI order and asked the Goenkas to respond within two weeks. SAT also instructed SEBI to set a hearing within a week of receiving the Goenkas’ response, after which, within two weeks, SEBI should issue appropriate orders.
The Goenkas met the deadline, questioning the influence of a previous order from April 25 on the decision against them. Subsequently, on July 27, SAT ordered SEBI to assign another member to address the Goenkas’ concerns.
A fall-back option for ZEEL: In the meantime, after Goenka, the managing director and chief executive, couldn’t secure relief from SAT against the SEBI order, Zee Entertainment Enterprises formed an interim committee of senior executives on July 17 to manage the company’s operations.
Price Action: ZEEL shares were trading 0.02% higher at ₹234.05 on Friday afternoon, a couple of hours before market close.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.