ZEE Shares Rise After SAT Lifts SEBI Order Restraining Punit Goenka From Holding Key Managerial Posts

Zee Share Price Update: In a big relief for Zee's former promoter Punit Goenka, the Securities Appellate Tribunal (SAT) on Monday paved the way for Goenka to resume as managing director and CEO of Zee, and head one of the largest merged entities in the media and entertainment following Zee-Sony merger. Soon after the SAT lifted the SEBI ban against Punit Goenka over an alleged fund-diversion case, the share price of Zee Entertainment Enterprises Limited (ZEEL) traded higher on Monday.

Zee Entertainment shares were spotted trading 1.16% higher at Rs 252 per share at 12:13 pm IST today.
In an August 14 order, SEBI barred Punit Goenka of Zee Entertainment Enterprises from holding key directorship in listed companies over an alleged fund-diversion case.

The tribunal has, however, permitted the market regulator SEBI to continue its investigation in the case.
This means that SEBI's probe against Goenka and Subhash Chandra, Goenka's father and the former chairman of Zee Entertainment Enterprises Ltd (ZEEL), will go on.

The development comes as Goenka approached the SAT seeking a stay on the SEBI order prohibiting him from holding key posts within four Zee group companies and in the merged entity of ZEEL and Sony Pictures Networks India.
It was alleged that the duo abused their roles as directors and Key Managerial Personnel (KMPs) of a listed company by diverting vast amounts of public money from ZEEL to private entities owned and controlled by them.

One must note that the Goenkas have been involved in a legal battle with Sebi for a long time now and this legal fight has become a stumbling block in Zee's proposed merger with Sony Pictures Networks India, which is pegged as one of the biggest deals in India's media and entertainment space.