On Friday morning, the Securities and Exchange Board of India (SEBI), while rejecting a settlement application filed by the company and CEO Punit Goenka, ordered further investigation into the company’s violation of regulatory provisions. -The stock of Entertainment Enterprises (ZEEL) is attracting attention.
SEBI said that the Show Cause Notice (SCN) dated July 6, 2022 issued by the Examining Officer (AO) will be incorporated into the findings of further investigation conducted by SEBI in the matter. Accordingly, the contents of the SCN dated 06 July 2022 issued by the AO, including the examination report and all documents relied upon, shall be treated as an integral part of the further investigation report by SEBI on ZEEL .
“The contents of the SCN dated July 6, 2022 issued by the AO to the notifier will also be incorporated in the SCN issued with immediate effect. The immediate AO proceedings against the notifier will be withdrawn,” SEBI said.
In July 2022, SEBI had ordered Zee Entertainment Enterprises Ltd, Subhash Chandra and SCN was issued to Punit Goenka. SCRA and why there should be no penalty against the notifier ZEEL in terms of Section 23E of the SCRA and why there should be no inquiry against Subhash Mr. Chandra and Mr. Punit Goenka have submitted that Rule 4 of the Adjudication Rules, 1995 , Section 15-I of the SEBI Act, 1992 and asked why there should not be a penalty in terms of Section 15-I of the SEBI Act, 1992. .
ZEEL stock has fallen 10% in the past month and 18% in the past six months.
ZEEL shareholders rejected the proposal for re-appointment of Mr. Punit Goenka as Director at the 42nd Annual General Meeting on November 28, 2024. Mr. Goenka, who was the Managing Director (MD) and Chief Executive Officer (CEO) of ZEEL, had earlier decided to step down from the MD role and focus on his responsibilities as CEO.
Ahead of its third quarter results, Elara Securities said increased investment in content led to an EBITDA margin of 14.5% for the quarter, compared to It expects sales to decline 165 basis points quarter-on-quarter.
“However, margin performance is likely to remain generally positive. Quarter-on-quarter, Zee5’s losses may remain stable.”
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