ZEEL: SEBI Order On Punit Goenka's Settlement Plea - Check Details

The Securities and Exchange Board of India ( SEBI ), on Thursday, denied the settlement applications by Zee Entertainment Enterprises Limited (ZEEL) CEO Punit Goenka, and Essel Group Chairman Subhash Chandra. In a detailed order issued on its website, the market regulator said that it will look into the matter in more detail.

“The panel of Whole Time Members of SEBI rejected the settlement applications and also referred the matter to SEBI for further investigation. In this regard, it has been observed that subsequent to the completion of the investigation in the instant matter, it has been decided by the  Competent  Authority to proceed against the Noticees under Section 11B of SEBI Act 1992” as per report. 

SEBI: Procedure for Settlement 

Goenka and ZEEL had submitted proposals for a settlement under SEBI's Settlement Regulations (2018), but SEBI's Whole-Time Members panel rejected the same

SEBI: Investigation 

In July 2022, SEBI had said that the company was violating the Listing Obligations and Disclosure Requirements (LODR) requirements and sent them a previous show cause notice (SCN).

With the current outcome, the agency plans to release a fresh SCN that incorporates new information from the current investigation along with previous conclusions.

ZEEL Matter-SEBI: Next Actions

In accordance with Section 11B of the SEBI Act, SEBI will take action against ZEEL, Chandra, and Goenka. Details from the July 2022 notice, examination reports, and other documents related to the enlarged inquiry will be included in the revised SCN.

"Accordingly, the content of the SCN dated July 06, 2022, issued by the AO including the examination report and all the relied upon documents will be treated as integral part of the further investigation report by SEBI in the matter of ZEEL," as per the order.