SEBI’s big action on Subhash Chandra and Punit Goenka, will have to leave the post of chairman and director! Zeel shares fell.

New Delhi. Markets regulator SEBI has barred Essel Group Chairman Subhash Chandra and Group company Zee Entertainment Enterprises Limited (ZEEL) Managing Director and Chief Executive Punit Goenka from holding directorship or any key managerial position in any listed company. The Securities and Exchange Board of India (SEBI) has taken this action on Chandra and Goenka on Monday after being found guilty in the matter of sending ZEEL’s money to another place.

According to SEBI, ZEEL Chairman Chandra and Director Goenka abused their position by holding key managerial positions at the time of the alleged violation of regulations and diverted the company’s funds to other companies for their personal gains. SEBI said in its interim order that 13 firms were sent one by one in just two days to siphon off ZEEL’s funds. SEBI said that the value of shares of Zee Entertainment used to be Rs 600 in the year 2018-19 but by the year 2022-23 it has come down to around Rs 200. Despite the company being in profit, the fall in the share price leads to the conclusion that all was not well within the company.

Question on Shareholding

Significantly, the promoters’ shareholding in Zee Entertainment fell from 41.62 per cent to 3.99 per cent during this period. Chandra and Goenka continue to hold key positions despite such a reduced stake. SEBI said that both Chandra and Goenka are prohibited from holding directorship or key managerial position in any listed company or its subsidiary till further orders.