SAT allows Zee to proceed with ₹3,143 crore warrant issue

The Story in Brief

The Securities Appellate Tribunal on Friday allowed Zee Entertainment Enterprises and its MD Punit Goenka to complete a ₹3,143 crore preferential warrant issue to a promoter group entity, partially staying SEBI's two-month market debarment. The tribunal directed Zee and Goenka to deposit the full penalty within a week, with SEBI holding the funds in an interest-bearing account. SAT extended the warrant deadline by one week and permitted Zee to conduct mutual-fund transactions for daily business needs, but not for dividend payments.

SAT noted that 76.64 per cent of public shareholders approved the issue at an EGM on July 31, and that 96 per cent of Zee's shareholders are public. The tribunal observed that SEBI had no objection to the investment after the debarment period, calling that position illogical. SEBI's counsel admitted no charges of fraudulent or unfair trade practices had been made against Zee in the impugned order. The broader debarment remains in place except for the warrant-related relief.