ZEE-Sony Merger: SEBI said- Subhash Chandra and Punit Goenka of Zee Enterprises misappropriated public money.
New Delhi: Sebi, in its reply to the Securities and Appellate Tribunal (SAT) in the case of Zee Enterprises, has said that Subhash Chandra, Chairman of this large listed company and Punit Goenka, MD and CEO, misappropriated the public Sent the money to private companies. SEBI, in its reply to the SAT, said, “In the present case, the Chairman and MD of this large listed company are involved in various schemes and transactions through which public money of the listed company is being siphoned off to a large extent in the private sector owned and controlled by these persons.” given to the institutions.
Subhash Chandra and Punit Goenka have approached the SAT against the SEBI order. Sebi has barred him from holding any directorship or key management position in any listed company on charges of misappropriation of funds from Zee Enterprises.
false documents submitted
Sebi said, ‘The conduct of the appellant in this regard is telling. Not only have violations taken place, but several false documents and statements have also been submitted to cover up such wrongdoings. In the Shirpur case, we have seen that the promoter group has timed the sale of its shares in such a way that it does not bear the brunt of the fall in Shirpur’s shares in the open market. It is ultimately the small retail investors who bear the brunt of the fall in the share price.
Is in the top-200 big listed companies
Zee Limited is one of the top 200 largest listed companies in the country with a large number of public shareholders and retail investors and hence, holds a dominant position in the Indian securities market.
Appellant gave wrong information to the regulator
SEBI said that as mentioned in the impugned order, the appellants misrepresented the investors as well as the regulator and made an excuse through forged documents that the money was returned by the seven related companies. Whereas in reality, it was Zee Ltd’s own funds which went through many levels and finally came back to its account. These facts reasonably suggest that immediate action is needed to protect the management of such companies and also to protect their investors and other stakeholders.
SEBI bound to protect the interests of investors
In fact, if during the preliminary inquiry, it is found prima facie that the person is involved in rigging the securities market, SEBI is bound to pass an interim order ex parte to protect the interests of the investors and protect the integrity of the securities market . The manner in which money has flown from one promoter company to another is beyond doubt that the funds of Zee Ltd. and other listed companies have been used by the promoters to give a false impression that the seven related parties have acquired Zee Ltd. (Yes Bank 200 crores has been repaid to Rs.
