SEBI Says It Sees Significant Red Flags in Transactions between Zee and Essel Entities

IANS 14 September 2023

Investor Interest

In a significant move, market regulator, the Securites and Exchange Board of India (SEBI) on Wednesday reiterated vehemently before the securities appellate tribunal (SAT) that it sees many vital and notable red flags in the transactions between Zee and Essel entities.

The vile plan was to round-trip Zee's own money back into the company through entities to pay back the debt of Essel entities, the SEBI counsel argued, adding that the transactions between Zee and Essel entities can't be genuine or a coincidence.

The case pertains to Punit Goenka, the former Zee Entertainment Enterprises Ltd boss, moving SAT to seek a stay on the SEBI order barring him from holding key positions within four Zee group firms and in the merged entity of Zee Entertainment Enterprises Ltd (ZEEL) and Sony Pictures Networks India.

The SEBI order has alleged that Goenka and his father, Subhash Chandra, former chairman of ZEEL, abused their positions as directors and key managerial personnel (KMP) of a listed company by siphoning off funds for their own pecuniary benefit.

Mr Goenka's move to challenge SEBI's confirmatory order came in response to its decision on 14th August, according to which the father-son duo has been prohibited from holding positions as directors or KMP in at least four Zee group companies as well as in the merged entity of ZEEL and Sony Pictures Networks India, until further directions from the regulator.

The regulator added before SAT that Zee must present concrete evidence to show that its transactions with Essel entities were genuine and that seven Essel entities in question in the case are controlled by Zee Entertainment's KMP.

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Comments

User

iaminprabhu

2 years ago

Zee Essel Group, is known to have several DOZENS of companies since last 30 + years & these Father Son duo with their close ones must surely be taking everyone for a ride which ne3ds deep through investigations.

SEBI & Govt. Authorities should not let go scot free these people & bring them to justice with publishing facts.