After ex-chairman Subhash Chandra and CEO Punit Goenka failed to get the market regulator to overturn its prohibition on them holding board positions, Zee Entertainment Enterprises announced on Monday that it has constituted an interim committee to oversee operations.
In-depth details about Zee Entertainment creates an interim management committee
The Zee board will have oversight over the interim committee, according to a business representative.
Chandra and Goenka were prohibited from holding board posts in publicly traded companies for a year by the Securities and Exchange Board of India in June on the grounds that they actively participated in money laundering to the group’s other listed corporations and businesses connected to founder shareholders.
The Security Appellate Tribunal said last week that it did not identify any illegality or absurdity in Sebi’s order and did not see any justification for meddling. Consequently, it declined to revoke the regulator’s judgment.
It invited Chandra and Goenka to defend themselves before the regulator and instructed Sebi to issue a final order by the middle of the next month.
The decision comes as ZEE and a Sony Group business in India are nearing a merger that was initially proposed in 2021 to create a $10 billion TV company, with Goenka expected to serve as the merged company’s managing director and CEO.
