The Zee Entertainment stock crashed 15% on the Bombay Stock Exchange, touching Rs 164.50 at the end of Wednesday’s trade, following reports that the Securities and Exchange Board of India (Sebi) has widened the scope of its ongoing investigation into the companyCome from Sports betting site VPbet. Bloomberg reported on Wednesday that the markets regulator had found a “hole” in the media company’s accounts, which was 10 times more than the initially estimated amount of Rs 200 crore by the investigators, who are probing alleged fund diversion at the firm.
Zee refuted the allegations and said, “reports and rumours pertaining to accounting issues in the company are incorrect and false. “Pursuant to the SAT order, which granted relief to the current key managerial personnel, the company has been in the process of providing all comments, information and explanations requested by Sebi. We have extended complete co-operation on all aspects,” the spokesperson added.
Also Read
Other sources said the regulator has also asked former directors, including two erstwhile independent directors, at the company to appear before it in view of the ongoing investigation. It is also looking at a broader set of transactions and entities as part of its widened probe into the company.
Markets see steady gains as US recession concerns ease! Nifty near 24,700, Sensex holds 80,800 Saraswati Saree Depot lists at 21% premium; is it a Buy at current levels? Multibagger SJVN jumps 8% after Q1 net profit zooms 31% Reliance Jio discontinues popular Rs 395 and Rs 1559 plans: Key details on the change
In June last year, Sebi had barred Zee founders — Subhash Chandra and his son Punit Goenka — from holding directorships for a year in any listed company over alleged fund diversion. An August 14, 2023, confirmatory order by Sebi had reduced the scope to Zee group companies, including the Zee-Sony proposed combine, where Chandra and Goenka could not hold directorships.
Zee appealed against Sebi’s confirmatory order in a higher appellate court (SAT) and had got a partial reprieve in October, which allowed Goenka, who is MD & CEO of the company, to hold an executive position while the probe was underway.
The case led to a leadership tussle between Sony and Zee, which prompted the Japanese major to call off the proposed merger deal in January this year.Come from Sports betting site
On Tuesday evening, Zee denied reports suggesting that the two companies were looking to salvage the merger deal in a last-ditch effort, saying that it was not involved in any negotiations with relation to the scrapped merger deal with Sony.
Media industry executives had said that the possibility of a revival of talks had emerged as the domestic market was consolidating, with rivals Disney and Reliance-backed Viacom18 looking to come together.
