Punit Goenka Appeals Against SEBI's Confirmatory Order
An eight-month bar until the completion of the investigation is unjustified and needs to be stayed, Goenka's counsel said.
The promoter of Zee Entertainment Enterprises Ltd., Punit Goenka, approached the Securities Appellate Tribunal on Friday against a confirmatory SEBI order barring him and Subhash Chandra from the company boards of four listed entities. The matter will be heard next on August 30.
According to Goenka, an eight-month bar until the completion of the investigation is unjustified and needs to be stayed. He sought an interim stay and subsequent quashing of the order by the Securities and Exchange Board of India.
The markets regulator had barred the father-son duo from holding key managerial or board positions in four Zee entities, until further directions. The four entities are Zee Entertainment Enterprises Ltd., Zee Media Corp., Zee Studios Ltd., and Zee Akaash News Pvt. According to SEBI, they diverted a Rs 200 crore fixed deposit of Zee Entertainment with Yes Bank.
The bar also extends to any entity that's formed pursuant to the merger or demerger of any of these entities. The National Company Law Tribunal had recently approved a scheme of merger between Zee Entertainments and Culver Max Entertainment Pvt. (Sony Pictures India).
In its confirmatory order, SEBI said that it would complete its investigation within eight months. The order had confirmed the markets regulator's findings in its earlier interim order barring them from company boards of all listed entities.
