1 month ago
SEBI Bars ZEEL, Shares Drop 13%
Zee Entertainment, a big Indian media company, got in trouble with the government regulator SEBI.
SEBI said the company hid a land deal that was used as a loan guarantee for its own family businesses.
Because of this, SEBI banned the company from trading for two months and fined it and its top bosses.
The company’s stock fell about 13% in the market.
Zee says the fine and ban won’t stop it from raising new money for its business.
SEBI also said the company didn’t tell investors about the land deal in its reports.
The company is looking for legal help to deal with the order.
SEBI barred ZEEL from the market for two months and fined the company ₹30 lakh, while CEO Punit Goenka and Chairman Subhash Chandra were each penalised ₹58 lakh and ₹60 lakh.
The order stemmed from a land pledge case where ZEEL’s Hyderabad property was used as security for loans to related Essel Group entities without prior board approval.
ZEEL’s shares fell 13% on the BSE and 12.4% on the NSE after the regulator’s announcement.
The company said the SEBI order would not affect its planned ₹2,300 crore fundraising.
SEBI’s investigation found that ZEEL failed to disclose the related‑party transaction in its financial statements.
- Who
- Zee Entertainment Enterprises Ltd, CEO Punit Goenka, Chairman Subhash Chandra, SEBI
- What
- SEBI order restricting ZEEL's market access and imposing penalties over undisclosed land pledge
- Where
- India, Hyderabad
- When
- June 12, 2023
- Why
- Failure to disclose related‑party land pledge used as security for loans to related entities
Key facts
- Company
- Zee Entertainment Enterprises Ltd
- Regulator
- Securities and Exchange Board of India
- Penalty
- ₹1.48 crore total
- Market restriction
- 2 months
- Share price drop
- 13% on BSE
- Fundraising plan
- ₹2,300 crore
Quotes
SEBI
Regulator, Securities and Exchange Board of India
“Noticee No.3 being the chairman of ZEEL, misused his position and authority in ZEEL and handed over the original title deeds of the asset (Hyderabad Land) of ZEEL to IHFL by falsely declaring that the said action had the approval of the management of ZEEL. Through such actions, the noticee put the material asset of ZEEL at risk for his personal benefit,”
thehansindia.com
“"The approval secured for all the resolutions, marks a firm step forward for the company in strengthening its financial foundation..."”
businesstoday.in
Sources
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