SAT Grants Relief To ZEE's Punit Goenka, Sets Aside Sebi Ban From Holding Key Managerial Positions

In a significant relief to Punit Goenka of Zee Entertainment Enterprises Ltd (ZEEL), the Securities Appellate Tribunal (SAT) on Monday set aside Sebi’s order that barred Goenka from holding key managerial positions in the company and other firms. However, the SAT has allowed Sebi to continue its ongoing investigation.

Shares of Zee Entertainment Enterprises Ltd on Monday were trading Rs 7.70 or 1.89 per cent higher at Rs 253.8 apiece on the BSE, at 11.46 am.

Goenka had challenged an order by the Securities Exchange Board of India (Sebi) passed in August, asking its investigating officials to complete the enquiry in eight months. The order also barred ZEEL’s former directors Subash Chandra and Goenka from holding key managerial positions till the investigation is over.

Goenka approached SAT the second time over the same issue. In June, the regulator passed an interim order that had said that Chandra and Goenka were not to hold any board or key managerial position in ZEEL, its subsidiary companies, or in any company resulting from a merger with these companies.