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Zee Entertainment shares crash 13% after SEBI bars directors
Zee Entertainment shares fell 13% to a low of Rs 100.40 on the BSE after the Securities and Exchange Board of India (SEBI) barred founder Subhash Chandra and director Punit Goenka from…
The Story in Brief
Zee Entertainment shares fell 13% to a low of Rs 100.40 on the BSE after the Securities and Exchange Board of India (SEBI) barred founder Subhash Chandra and director Punit Goenka from the securities market for two months. The market regulator said a transaction was carried out without mandatory approvals from the company’s board and audit committee, and alleged violations of the Prohibition of Fraudulent and Unfair Trade Practices regulations and listing rules.
Separately, Zee reported a 48% fall in net profit to Rs 74 crore for the June quarter, hurt by a dip in advertising revenue due to the Middle East crisis. Revenue rose 5% to Rs 1,907 crore. The company said it is evaluating the SEBI order and has sought legal advice.
The Indian Opinion
SEBI’s order against Zee’s top brass will revive talk of weak corporate governance at the network. But the stock rout also reflects a market quick to punish without waiting for a hearing. The real test is whether Zee can win a stay on the ban and, more importantly, fix the audit and board approval gaps SEBI flagged, or else face a longer loss of investor trust.
Sources (2): businesstoday.in, economictimes.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
