Zee Entertainment Settles SEBI Regulatory Case, Witnessing 3% Rise in Share Price

22 Jun 2023 , 11:09 AM

Zee Entertainment Enterprises Ltd (ZEEL) experienced an early morning surge in share price on Thursday, rising by approximately 3%. This growth followed the company’s settlement with the market regulator regarding an alleged violation of regulatory norms.

The stock price of ZEEL climbed as high as 2.99% to reach Rs 185.75 per share on the BSE. The Securities and Exchange Board of India (SEBI) conducted an examination of ZEEL’s stock, specifically focusing on potential breaches of insider trading norms and Substantial Acquisition of Shares and Takeovers (SAST) regulations during the period of January to December 2019.

In related news, Zee’s Managing Director and Chief Executive, Punit Goenka, expressed optimism regarding the finalization of the company’s merger with Sony Pictures Networks (SPN).

Zee Entertainment’s share price closed more than 4% higher on Wednesday due to news reports indicating that Sony had no intentions of withdrawing from the merger. Despite allegations of financial diversion leveled against Zee’s founders, Subhash Chandra and Punit Goenka, by India’s markets regulator, Sony remained committed to the merger.

Zee’s share price has faced a decline of over 13% in the past year, with a decrease of more than 23% year-to-date. From a technical standpoint, Zee shares will need to surpass the Rs 193 level to maintain further upward momentum. At the time of writing, ZEE shares were trading 1.91% higher at Rs 183.8 per share on the BSE.
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