The Securities and Exchange Board of India (SEBI) has provided clarification regarding Subhash Chandra and Punit Goenka, stating that until further orders, the two individuals should refrain from holding positions of a director or a Key Managerial Personnel (KMP) in ZEE Entertainment Enterprises (ZEE), other public listed companies, and any wholly owned subsidiaries that are under the control of these entities. This clarification indicates certain restrictions placed on their involvement in such positions within these entities, potentially affecting their roles and responsibilities. The specific reasons and implications behind this directive may depend on regulatory and governance considerations.
Shares of ZEE Entertainment Enterprises (ZEE) are expected to attract attention in the morning trading session following an announcement from the Securities and Exchange Board of India (SEBI). SEBI has stated that it will conclude its investigations into Subhash Chandra and Punit Goenka within the next eight months. The regulatory authority clarified that until the conclusion of these investigations, both Subhash Chandra and Punit Goenka should refrain from holding positions as directors or Key Managerial Personnel (KMP) in ZEE, other publicly listed companies, and their wholly owned subsidiaries that are under the control of these entities. Additionally, the directive extends to any companies formed as a result of mergers or amalgamations involving the aforementioned entities. This announcement could have implications for the roles and responsibilities of Subhash Chandra and Punit Goenka within ZEE and other related entities.
Madhabi Puri Buch, the Chairperson of the Securities and Exchange Board of India (SEBI), emphasized that even though the entities in question may argue that the limited restraints imposed on them are excessive and disproportionate, it is crucial to recognize that allowing these entities to remain in positions of influence could severely impact the fairness and completeness of the ongoing investigation. SEBI highlighted that the interests of these entities are fundamentally at odds with the interests of the public shareholders of the company.
As per the preliminary findings, SEBI stated that the entities in question have actively attempted to conceal actions that have resulted in a loss of at least Rs 143.90 crore to the public listed companies, including ZEE. This order provides further insight into the reasoning behind SEBI’s decision to restrict the involvement of these entities in various positions and entities during the ongoing investigation.
