Zee's Independent Committee Finds No Irregularities Amid Charges Levelled By SEBI
The committee found that the transactions under investigation "did not adversely affect the company or its shareholders", Zee Entertainment said.
Subhash Chandra, chairman of Essel Group. (Photo: Punit Goenka's Twitter account)
Zee Entertainment Enterprises Ltd. on Wednesday said the independent investigation committee constituted by its board to look into the allegations of regulatory violations has found "no material irregularities" committed by the company.
The committee, formed in February this year under the chairmanship of Justice (retired) Satish Chandra, "carried out an extensive fact-checking exercise" amid the allegations levelled by regulatory bodies, Zee Entertainment said in a release.
The panel was constituted after the Securities and Exchange Board of India launched a probe against Zee Entertainment's leadership in an alleged fund diversion case.
The market regulator had in August last year barred Zee founder Subhash Chandra and his son Punit Goenka from holding key positions in Zee Entertainment, Zee Media Corp., Zee Studios, and Zee Akaash News Pvt.
The restriction was imposed after SEBI, in its interim order, alleged that the father-son duo diverted Rs 200 crore fixed deposit of Zee Entertainment with Yes Bank to service the loans of other Zee Group entities.
According to Zee Entertainment, its independent investigation committee found that the company has implemented necessary remedial measures in respect of past issues that were already reviewed by SEBI.
"The committee also noted that the transactions (under investigation) did not adversely affect the company or its shareholders. The mentioned transactions were found to be a part of the normal course of business, and no material irregularities were reported within the same," it added.
After the submission of the committee's findings, Zee's board has advised the company to "proactively settle any pending adjudication proceedings with SEBI in a time-bound manner," the release added.
The board has further advised the company to focus its efforts on enhancing performance and profitability across all aspects, it further noted.
Shares of Zee Entertainment settled 1.66% higher at Rs 128.9 apiece on the BSE, compared to a 0.21% decline in the benchmark Sensex. Year-to-date, the stock is down 53%.
Out of 20 analysts tracking the company, seven have a "buy" rating on the stock, six suggest a "hold," and seven recommend a "sell," according to Bloomberg data. The average of 12-month analysts' price targets suggests a potential upside of 26.2%.
