The Securities and Exchange Board of India (SEBI) has rejected settlement applications submitted by Zee Entertainment Enterprises Limited (ZEEL) and its CEO Punit Goenka, deciding instead to continue its investigation into ZEEL, Goenka, and Essel Group Chairman Subhash Chandra.
Key Details:
- SEBI declined the settlement applications under the SEBI (Settlement Proceedings) Regulations 2018, which allow entities to resolve proceedings by paying a fee or complying with non-monetary conditions.
- A new show-cause notice (SCN) will be issued to ZEEL, Chandra, and Goenka, combining findings from an earlier SCN dated July 6, 2022, and results from ongoing investigations.
Background: The earlier SCN alleged violations of Listing Obligations and Disclosure Requirements (LODR) Regulations. Following this, ZEEL and Goenka sought to settle adjudication proceedings through applications, which were rejected by SEBI’s Whole-time Members panel.
Next Steps:
- SEBI will proceed against the involved parties under Section 11B of the SEBI Act, 1992.
- Findings from the July 2022 SCN and subsequent investigations will be integral to the new SCN, ensuring all related evidence is consolidated.
This decision signals SEBI’s intent to conduct a comprehensive probe to address regulatory concerns related to ZEEL and its executives.
