Zee Entertainment Enterprises announced on Monday that it has established an interim committee to oversee operations following the inability of former chairman Subhash Chandra and CEO Punit Goenka to overturn the ban imposed by the market regulator on their positions on the board. According to a spokesperson for the company, “Since the order restricts Mr. Punit Goenka from holding the position as director or key managerial position in a listed company, the Board of the Company has constituted an Interim Committee of senior executives to ensure smooth operations of the Company.” The interim committee will operate under the supervision of Zee’s board.
The spokesperson also expressed the board’s unwavering belief in Punit Goenka’s leadership abilities and stated that they will closely monitor the progress of the situation.
In June, the Securities and Exchange Board of India (SEBI) imposed a one-year ban on Chandra and Goenka, accusing them of actively diverting funds to other listed entities and companies associated with the founding shareholders. The Security Appellate Tribunal recently rejected their plea to overturn SEBI’s decision, citing the absence of any illegality or irrationality in the order and no grounds for interference. The tribunal instructed SEBI to issue a final order by the middle of next month, allowing Chandra and Goenka an opportunity to defend themselves before the regulator.
This ruling coincides with the ongoing merger between ZEE and Sony Group’s Indian unit, which was announced in 2021 and aims to create a $10 billion television enterprise. Punit Goenka is expected to become the managing director and CEO of the merged entity. Following the announcement, ZEE’s shares experienced a 6.3% increase in closing.
(With inputs from Reuters)
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Basant Kasayap is an entertainment aficionado who delves into the glitz and glamour of the entertainment industry. From Hollywood to Bollywood to regional cinema, she offers readers an insider’s perspective on the world of movies, music, and pop culture.
