SAT Reverses Sebi's Order, Punit Goenka Can Lead Zee-Sony Merged Entity

30 Oct 2023 , 03:01 PM

The Securities Appellate Tribunal (SAT) overturned the Securities and Exchange Board of India’s (Sebi) order against Zee Entertainment Enterprises’ promoter, Punit Goenka, which had previously barred him from key positions in several Zee group firms and the merged entity with Sony Pictures Networks India.

As a result of the SAT decision, Punit Goenka can now be appointed as the Managing Director of the merged entity.

Justice Tarun Agarwala’s order emphasizes Goenka’s cooperation in the investigation, with provisions for the market regulator to take appropriate actions if violations are confirmed.

Sebi’s investigation, initiated due to alleged fund misappropriation and money circulation through related entities, is expected to conclude within eight months, as stated in a confirmatory order issued in August.

The case revolves around a letter of comfort issued by Subhash Chandra, Goenka’s father and former chairman of the Essel Group, regarding the allocation of a Rs 200 crore fixed deposit with YES Bank.

Initially, Sebi had issued an interim order in June, barring both Chandra and Goenka from key managerial positions and directorships in all listed companies. However, SAT directed Sebi to grant the Zee promoters a hearing and issue a fresh order within two months, with the confirmatory order being issued in August by the Sebi chairperson.

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