The market regulator has modified its June 12 order against Subhash Chandra and Punit Goenka.
The Securities and Exchange Board of India (SEBI) has amended its directive, prohibiting the appointment of Subhash Chandra and Punit Goenka as directors or key managerial personnel in at least four Zee Group companies and the merged Zee Entertainment Enterprises (ZEEL) and Sony Pictures Networks India entity. The regulatory body has instructed its investigating officials to conclude the inquiry within eight months.
The directive, which was first issued on June 12, prevented the father-son duo from assuming directorial positions in any listed company. However, the regulatory body modified it on August 14.
The comprehensive 91-page order was endorsed by SEBI Chairperson Madhabi Puri Buch, signifying the regulatory body's resolute stance on the matter. This development has implications for Punit Goenka's involvement in the recently approved Zee-Sony merger, which secured the green light from the National Company Law Tribunal (NLCT) in the previous week.
As the investigation progresses, market observers and industry stakeholders are keenly observing the outcome of SEBI's probe, which has raised questions about corporate governance and financial transparency within Essel Group and its associated entities.