Punit Goenka back as MD of Zee after SAT sets aside SEBI order

The Securities Appellate Tribunal (SAT) on Monday quashed SEBI’s order restraining Punit Goenka from holding the post of MD and CEO of Zee.

The tribunal said that in the event that something material comes up during the ongoing SEBI investigation, then appropriate procedures can be adopted in accordance with the law. “We also make it clear that any observation made in this order is prima facie observation and will not influence the investigation nor will it be utilised by either of the parties,” SAT added.

• Also read: Appeals at SAT against SEBI up 53% in FY23

The Tribunal’s order paves the way for the merger between Sony and Zee because there is no restriction now on the appointment of Goenka as the CEO of the merged entity. Sources said Goenka is back as the Managing Director of Zee Entertainment today.

Zee Entertainment Enterprise Ltd shares were up 1.41 per cent to ₹252.60 at 12:45 pm.

Earlier, in a hearing on August 30, SAT had expressed unhappiness with the amount of time taken by SEBI for the investigation. 

• Also read: SAT not happy with SEBI’s order against Punit Goenka

In the order released on August 14, SEBI confirmed that Goenka along with his father Subhash Chandra will not be allowed to hold the position of a Director or a KMP in ZEEL or any of its subsidiaries, while the market regulator completes its investigation on the matter. The order by the capital markets regulator came on the back of an investigation into allegations related to the appropriation of certain fixed deposits of Zee by Yes Bank for squaring off loans of related entities of Essel Group.

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