Taking appropriate legal advice on SEBI order against Subhash Chandra, Punit Goenka: ZEE Chairman

“The Board of Directors of Zee Entertainment Enterprises Ltd. (ZEEL) has noted the interim ex-parte order issued by the Securities and Exchange Board of India (SEBI), with respect to Dr. Subhash Chandra and Mr. Punit Goenka,” Gopalan said in a statement.

“The Board is currently in the process of reviewing the detailed order, and appropriate legal advice is being sought in order to take the next steps as required,” he added.

India’s capital market regulator barred Essel Group chairman Subhash Chandra Goenka and his son Punit Goenka, the MD, and CEO of Zee Entertainment Enterprises Ltd (ZEEL), from holding any directorship or key managerial positions in any listed company in an interim order issued late on Monday.

The SEBI order followed an investigation that found the two had abused their board positions in Zee by “siphoning off funds for their own benefit,” the regulator said. The regulator has directed Zee to place the order before its board within seven days. The Goenkas have 21 days to respond to Sebi’s order.

Legal experts say that the development could delay Zee’s proposed merger with Sony Pictures Networks India (SPNI), now known as Culver Max Entertainment. They also add that the Sebi order also means Goenka may not be able to hold a senior role in the Zee-Sony merged entity.Gopalan said that the company’s board has continued to direct management toward its long-term strategic goals and priorities with a single emphasis on increasing shareholder value every year.”All the appropriate steps will be actioned as necessary, in order to ensure that the interest of the Company and all its valuable shareholders is kept at the forefront,” he added.

He also said that the board recognises the significant contribution made by Dr. Subhash Chandra as the founder of the Company and the growth and value generation-centric leadership showcased by Punit Goenka.

“The Board is confident that the Company, will continue to achieve the set goals for the future and most above, create value for all stakeholders,” he stated.