Zee Row: SAT modifies Jul 10 order, suggests appointing authorised person to hear the matter

Sebi had asked SAT to modify its order and sought appointment of Ananth Narayan as WTM or an authorised person to pass an order on the matter, as per earlier news reports.

“If no WTM is available, officer higher in grade, in rank and position will hear the matter,” ET NOW quoted SAT as saying.

SAT had stated that Sebi whole-time member (WTM) will schedule a hearing within one week from the date of the Goenkas’ reply submission. Following the hearing, the WTM will issue suitable orders within two weeks.

“We have placed on record the extenuating circumstances Sebi is in, with only three whole-time members, including one (Anant Barua) whose term is coming to an end on 31 July. Others, (Ashwani Bhatia who had passed the order, and Narayan), were part of settlement proceedings in the matter. We seek the appointment of Narayan as WTM to decide on it, or allow an authorised person to pass an order on the matter,” Mint quoted Darius Khambata, senior counsel, appearing on behalf of Sebi, as saying.

Earlier, SAT had declined to grant a stay on the interim order issued by the Securities and Exchange Board of India (Sebi) against Subhash Chandra Goenka, chairman emeritus of Zee Entertainment Enterprises (ZEE), and his son Punit Goenka, who serves as the company’s MD and CEO.In disposing of the appeals, the appellate tribunal had instructed the Goenkas to submit a response, along with an application to vacate the ex parte ad interim order dated June 12, 2023, within a two-week timeframe.The SAT had also asked the Goenkas to file a reply to the Sebi seeking modification of the June 12 order to remove Pen India’s name as a related entity.

The appellate tribunal had directed Sebi to appoint another WTM to consider the objections of the Goenkas. It was observed that the Sebi’s order against the father-son duo was influenced by the Shirpur Gold Refinery order dated April 25, 2023, in which the two are not parties. Sebi WTM Ashwani Bhatia had passed the order in both cases.

On June 12, the Sebi passed an interim order restraining the Goenkas from holding the position of a director or a key managerial personnel in any listed company or its subsidiaries until further orders for alleged siphoning and round-tripping of the funds.