Shares of Zee Entertainment Enterprises Ltd (ZEEL) surged 6.48% to ₹132 in early trade on Friday after the Securities and Exchange Board of India (SEBI) dismissed the company and CEO Punit Goenka’s settlement applications. SEBI has also ordered a deeper investigation into alleged violations of regulatory provisions.
Key Developments:
- Settlement Applications Rejected: SEBI declined the settlement applications submitted by ZEEL and its CEO, Punit Goenka.
- Additional Investigation Ordered: SEBI announced that the allegations outlined in the Show Cause Notice (SCN) dated July 6, 2022, will now be part of a broader investigation.
- Focus of Investigation: SEBI’s findings aim to examine violations under the Adjudication Rules, 2005, and potential penalties under various sections of the SEBI Act, 1992.
- Previous SCN Details: SEBI’s 2022 SCN sought clarification on regulatory breaches, particularly in terms of corporate governance and compliance by ZEEL and its executives.
Market Reaction:
Despite regulatory scrutiny, ZEEL’s stock showed resilience in early trading, indicating investor confidence in the company’s long-term prospects or technical buying post-recent lows.
As the investigation continues, ZEEL remains under close observation for its adherence to governance and regulatory standards.
