Zee Entertainment Clarifies On MCA Inspecting Books

Shares in Zee Entertainment jumped almost 6 per cent in trade, after it responded to a request from the exchanges for a clarification that the Ministry of Corporate Affairs had sought to inspect the books of accounts.

"We wish to inform you that we are in receipt of the letter dated January 21, 2020 from the Ministry of Corporate Affairs (MCA) seeking certain information and inspection under Section 206(5) of the Companies Act, 2013.

Further, please note that the information sought by MCA is already available in the public domain. However, we are collating all the desired information and will be providing the same to MCA with an intent to fully cooperate with their inspection. You may note that no conclusion or adverse inference has been drawn by any authority against the Company," the firm said in a release to the exchanges.

The shares of the company, which has lost almost 14 per cent in the last two trading sessions, recovered some ground and was last trading up by almost 4 per cent at Rs 237.

"With respect to your query and the price movement, we are not aware of any reason that should cause such price movement in our stock. The press reports seem to speculate that this inquiry was triggered by the resignation of independent directors few months ago, and we cannot fathom any reason for this dated fact (and subsequent full disclosures on all material issues arising out of such resignations made by the Company) to have caused such price movement in the Company's share price," the release further added.