In a three-page order issued on Thursday, Sebi said show cause notices had been issued against Zee, Subhash Chandra and their son Punit Goenka for alleged violation of Sebi regulations. It also ordered that the content of Shaw’s show cause notice be integrated into a wider investigation.
Mr. Chandra is a director and former chairman, while Mr. Goenka is the company’s executive director, CEO, and MD.
“The allegations in the SCN dated 06.07.2022 issued by the AO will be incorporated into the outcome of further investigation conducted by SEBI in this regard.Thus, the content of the SCN dated 06.07.2022 issued by the AO shall be treated as an integral part of the further investigation report by SEBI in the ZEEL matter, including the investigation report and all documents relied upon,” the SEBI order said.
The case relates to adjudication proceedings initiated against Zee Entertainment Enterprises under section 23E of the Securities Contracts (Regulation) Act, 1956.
Sebi had appointed Parag Basu as AO on October 28, 2021, but the case was later reassigned to AO Amit Kapoor on December 27, 2024. Mr. Gee and Mr. Goenka had filed a settlement application to resolve the litigation initiated against them. However, a committee of full-time members of SEBI rejected the settlement application and referred the matter to Sebi for further investigation. “The competent authority has directed that proceedings be taken against the notification under Section 11B of the SEBI Act, 1992,” the order reads.
Zee’s share price today ended at Rs 123.95 on the BSE, up 0.73% from its previous close.
After the contract with Sony ended, the stock price has been on a downward trend. G’s stock price has plunged nearly 60% in the past 12 months.
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