Following the Securities and Exchange Board of India's decision to exclude Subhash Chandra, chairman of the Essel Group, and Punit Goenka, MD and CEO of Zee Entertainment Enterprises Ltd (ZEEL), from holding executive posts, shares of Zee Entertainment fell 7% in early trade Today.
Zee Entertainment's NSE quote at 9:30 am was Rs 186.35, down 4.36 per cent from the previous close. The business has previously disclosed to exchanges that the board is studying the SEBI judgment and that legal counsel is being sought to go forward.
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For the benefit of related businesses they own and control, the Noticees alienated the assets of ZEEL and other listed companies of the Essel Group. The stacking of transactions entailed employing as many as 13 businesses as pass-through firms in certain cases within a short period of two days only, suggesting that the siphoning of cash was a well-planned scam, according to the SEBI decision. Shirpur Gold Refinery is the referred-to affiliated entity.
Looking into the notice issued by the SEBI, The Chairman of ZEE Entertainment Enterprises Ltd. released an official statement concerning Dr Subhash Chandra and Mr Punit Goenka, exuding confidence that the company will continue to achieve the set goals for the future and create value for all stakeholders.
The Board is presently analyzing the specific order, and proper legal counsel is being sought to take the necessary actions moving forward. With the official statement, it is to be seen how the company will comply with SEBI’s order!
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