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Shares in ZEE Entertainment Enterprises Ltd, or ZEEL, plunged 7% in Friday’s trade on concerns that the media company’s proposed merger with India’s Sony Pictures Network (SPN) could face a fresh setback as capital markets regulator Sebi Stock exchanges were required to file their April 25 order as part of the record, the NSE and BSE told the National Company Law Tribunal (NCLT).
The stock exchange reportedly told NCLT that promoters of Essel Group’s Shirpur Gold Refinery had allegedly redirected company assets for profit. The notice follows instructions from Sebi, which had issued an interim order and notice of cause against the refinery, citing violations of other regulations, ET reported.
Following the developments, ZEE Entertainment shares fell 6.56 percent to a low of Rs 179.35 on the BSE.
The stock is down 24.68% year to date.
Exchanges may need to reconsider their approval for the Sony-Zee merger due to directions issued by Sebi under its order against the Essel Group entity, the exchanges were said to have told the Companies Law Court on Thursday.
Sebi had earlier issued an interim order in April against Shirpur Gold Refinery and its former chairman Amit Goenka, promoters Jayneer Infrapower and Multiventures, and five others, alleging they had siphoned funds from the company and breached other regulations.
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