Now Reading: SAT questions SEBI’s logic for two-month Zee market ban
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SAT questions SEBI’s logic for two-month Zee market ban
The Securities Appellate Tribunal on August 12 reserved its order on interim relief for Zee Entertainment and managing director Punit Goenka against a SEBI order barring them from the securities market. SAT…
The Story in Brief
The Securities Appellate Tribunal on August 12 reserved its order on interim relief for Zee Entertainment and managing director Punit Goenka against a SEBI order barring them from the securities market. SAT questioned why SEBI imposed a two-month ban, saying it could not understand the logic. Zee wants to proceed with a Rs 3,143.5 crore preferential issue of warrants to promoter entity Sunbright Mauritius Investments, which has a 15-day window from August 12 to complete.
SEBI argued that allowing the issue during the ban would dilute the market-access restriction and that Goenka could get indirect access as the ultimate beneficiary of Sunbright. Zee's counsel countered that the warrants go to Sunbright, not Goenka, and bring in capital at a premium. Both parties have six weeks to file replies. SAT's interim order will decide if the warrant issue can go ahead and whether the 15-day period starts from August 12.
The Indian Opinion
SEBI's two-month ban on Zee feels arbitrary when the regulator cannot explain why two months is the right period. The real test is whether the tribunal will let the company complete its Rs 3,143.5 crore warrant issue, which has a narrow 15-day window. If SEBI's concern is indirect access by Goenka, why not tailor conditions instead of a blanket bar? Watch for the interim order: it will show if the regulator's power is being used to protect investors or to punish.
Sources (2): thehindubusinessline.com, economictimes.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
