SEBI’s big action on Subhash Chandra, Puneet Goenka, will have to leave the post of director, shares fall as soon as the news comes
As soon as the news came, the shares of Zee Entertainment Enterprises fell by 6 percent as soon as this news came. Investors started leaving the company. The company’s stock opened at Rs 184.95 and fell to Rs 182.60 within a short time.According to Sebi, ZEEL Chairman Chandra and Director Goenka abused their positions by holding important managerial positions at the time of the alleged violation of regulations. Invested company funds in other companies for personal gain. SEBI, in its interim order, said that in just two days, 13 firms were sent one by one to siphon off ZEEL’s funds.
what is the whole matter
SEBI said that the share price of Zee Entertainment used to be Rs 600 in the year 2018-19 but it has come down to around Rs 200 by the year 2022-23. The fall in the share price despite the company being in profit leads to the conclusion that all was not well within the company. Notably, 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 small holdings. Sebi said both Chandra and Goenka are prohibited from holding directorship or key managerial positions in any listed company or its subsidiary till further orders.
In its order, Sebi said, it is clear that issuance of LOC by Subhash Chandra to Yes Bank in favor of associate entities, appropriation of Zeeil’s FD by Yes Bank due to default by associate entities, circuit transactions through connected entities to associate entities. Subsequent revelations by EEL in its Annual Report about receipt of funds by EEL and false submissions made to SEBI to show receipt of funds by EEL from ZEEL are an elaborate scheme organized by the promoter family of ZEEL to divert assets of ZEEL (ZEEL). were part of the plan.
