Punit Goenka, files second appeal with SAT, opposing SEBI’s eight-month ban

Punit Goenka, one of the promoters of Zee Entertainment Enterprises, on Friday, moved the Securities and Appellate Tribunal (SAT) against SEBI’s August 14 order barring him from taking the key position in the merged entity with Sony Pictures Network India.

businessline had reported on Monday, that the former MD and CEO was deliberating an appeal against the order that would bar Goenka from any executive position at Zee or its subsidiaries while the market regulator completed its investigations.

• Also read: Zee Sony Merger: Here is why Zee investors can look forward to better times

Uncertainity persists

The Zee-Sony merger has received all its clearances, but the uncertainty around Goenka’s fate remains. One of the key terms of the merger was appointing Goenka as the head of the merged entity. The Zee-Sony merger has already been delayed for more than two years because of legal troubles. If after eight months, SEBI concludes that Goenka had indeed misappropriated funds, he is likely to be permanently barred from holding the top executive position at Zee as well as the merged entity. 

• Also read: NCLT green signals Sony-Zee merger

So far, the merger plans have not changed, despite Goenka’s troubles with SEBI. Sony has not yet declared the replacement for Goenka to lead the merged entity. Goenka has also mentioned that the merger will continue with or without his inclusion.

For now, Goenka is contesting SEBI’s order. businessline also wrote in its earlier report that insiders believe that Sony is willing to wait, announcing Goenka’s replacement, while he irons out the matter with SEBI. The matter will be heard on August 30. 

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