Shares of Zee Entertainment Enterprises Ltd (ZEEL) tumbled 12 per cent in the mid-session trade on Wednesday amid reports that SEBI has found financial discrepancies in the accounts of the company.

The stock of the company nosedived 11.58 per cent to ₹170.65 apiece on the BSE.

ZEEL shares plunged 11.39 per cent to ₹170.70 per piece on the NSE.

In the mid-session trade, the scrip also hit its lower circuit limit on the bourses.

As per the reports, during SEBI's probe into Zee's founders, the regulator discovered that approximately ₹2,000 crore (equivalent to $241 million) may have been diverted from the company.

However, the company spokesperson clarified that the reports related to accounting issues are "incorrect and false".

The report suggested that the Securities and Exchange Board of India (SEBI) has been in conversation with senior officials at Zee, including its founders Subhash Chandra and his son Punit Goenka, and some board members to explain their stance.

Further, the report noted that the amount found missing is not final and may change after SEBI reviews the responses from the company executives.

A ZEEL spokesperson said, "The reports and rumours pertaining to accounting issues in the company are incorrect and false. Pursuant to the Securities Appellate Tribunal (SAT) order, which granted relief to the current Key Managerial Personnel (KMP), the company has been in the process of providing all the comments, information or explanation requested by SEBI, and has extended complete co-operation on all aspects."

On Tuesday, shares of ZEEL settled 8 per cent higher amid reports that Zee and Sony Pictures Networks (India) are working to salvage their $10-billion merger.

ZEEL shares have seen a massive downfall after the collapse of its merger with Sony Group Corp’s India unit.