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Bengaluru/Mumbai, July 10 (Reuters) – An Indian court on Monday dismissed an appeal by former Zee Group chairman Subhash Chandra and Zee Entertainment (ZEE.NS) Chief executive Punit Goenka has objected to India’s markets regulator banning the pair from board positions at listed companies.
Securities and Exchange Board of India (SEBI) June 12 forbidden Chandra and Goenka leave the public company’s board amid allegations of misappropriation of funds.
In its order, the regulator accused the duo of actively participating in the transfer of company funds to the group’s other listed entities and companies related to the founding shareholders.
While refusing to quash the regulator’s direction, the Securities Appeals Tribunal said it saw no benefit in intervening in the regulator’s order and asked the two to defend themselves before SEBI.
The ruling came after Zee and the local subsidiary of Japan’s Sony Group (6758.T) is approaching a merge Announcing the creation of a $10 billion television business in 2021, Goenka will become managing director and CEO of the combined entity. However, regulatory approval is still pending.
a division of sony has explain It is tracking developments that “could affect” the deal, while Goenka has reportedly explain The merger will take place whether or not he is the CEO of the combined company.
Zee shares fell 5.7 percent after the ruling. The stock is down 16.6% so far this year after falling 25.2% in 2022.
Reporting by Sethuraman NR in Bengaluru and Jayshree P Upadhyay in Mumbai; Editing by Eileen Soreng and Sohini Goswami
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