Now Reading: SAT lets Zee raise ₹3,143 crore via warrant issue
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SAT lets Zee raise ₹3,143 crore via warrant issue
The Securities Appellate Tribunal on Friday stayed the limited two-month debarment of Zee Entertainment Enterprises and Punit Goenka, allowing the company to complete its proposed preferential issue of fully convertible warrants worth…
The Story in Brief
The Securities Appellate Tribunal on Friday stayed the limited two-month debarment of Zee Entertainment Enterprises and Punit Goenka, allowing the company to complete its proposed preferential issue of fully convertible warrants worth ₹3,143 crore to a promoter group entity. SAT noted that 76.64% of public shareholders had approved the issue at an extraordinary general meeting on July 31.
SEBI's counsel admitted during the hearing that no charges of fraudulent and unfair trade practices in dealing in securities had been made against Zee in the impugned order. SAT directed Zee to deposit the full penalty within one week, with SEBI to keep the funds in an interest-bearing account. The tribunal also permitted Zee to conduct mutual-fund transactions for day-to-day business needs. Zee's shares closed 5.5% higher on Friday.
The Indian Opinion
SEBI's admission that it didn't charge Zee with PFUTP violations undercuts any narrative of rampant fraud, but the regulator's insistence on barring the capital raise until after the debarment period, SAT called it 'defeats logic', raises questions about the proportionality of its order. The final hearing will test whether SEBI can justify its broader debarment beyond the warrant issue, or whether this was regulatory overreach dressed as investor protection.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
