Mumbai: The Securities and Exchange Board of India (SEBI) has dismissed settlement applications filed by Zee Entertainment Enterprises (ZEEL) and its former CEO Punit Goenka, further intensifying the ongoing investigation into alleged regulatory violations.
SEBI stated that the content of the earlier show-cause notice (SCN) issued in July 2022 would be integrated into the broader investigation.
“The allegations in the SCN dated July 06, 2022 issued by AO are to be subsumed with the findings of the further investigation carried out by SEBI in the instant matter. Accordingly, the content of the SCN dated July 06, 2022 issued by the AO including the examination report and all the relied upon documents will be treated as an integral part of the further investigation report by SEBI in the matter of ZEEL,” the SEBI order said.
The matter originates from SEBI’s adjudication process under Section 23E of the Securities Contracts (Regulation) Act, 1956. The regulator had initiated proceedings following alleged violations of the Listing Obligations and Disclosure Requirements (LODR) Regulations.
Despite SEBI withdrawing show-cause notices issued to Zee, Subhash Chandra, and Punit Goenka, the contents of those notices remain integral to the ongoing probe.
Shares of ZEEL closed at ₹123.95 on the BSE on Thursday, registering a modest gain of 0.73%.
In a series of enforcement actions, SEBI in August 2023 barred Subhash Chandra and Punit Goenka from holding leadership positions in four group companies due to alleged financial mismanagement and fund diversion. This decision also disrupted the planned $10 billion merger between ZEEL and Sony India.
Further allegations involve letters of comfort (LoCs) issued by Chandra, including one worth ₹2,000 crore, and another amounting to ₹4,210 crore, currently under SEBI’s scrutiny.
While Goenka received temporary relief from the Securities Appellate Tribunal (SAT), SEBI continues to pursue additional evidence.
This regulatory clampdown highlights the growing scrutiny of corporate governance practices and reaffirms SEBI’s commitment to upholding transparency and accountability within India’s capital markets.
