SEBI rejects ZEEL's, Punit Goenka's settlement applications; to probe further

The order stated that, following the investigation, it has been decided "to proceed against the Noticees under Section 11B of SEBI Act 1992".

The market regulator has rejected the settlement applications filed by Zee Entertainment Enterprises (ZEEL) and ZEEL's CEO Punit Goenka, and has said that further investigation will be done into both entities and Essel Group's Chairman Subhash Chandra.

Under SEBI (Settlement Proceedings) Regulations 2018, any entity against whom proceedings have been initiated or are to be initiated can apply to settle the proceedings by paying a fee and/or by complying with non-monetary terms.

The adjudication order issued by the Securities and Exchange Board of India (SEBI) on January 2 said that a new showcause notice (SCN) will be issued to ZEEL, Chandra and Goenka which will incorporate findings recorded in an earlier SCN and the findings from further investigation.

According to order, the regulator had issued an SCN earlier, dated July 6, 2022, to the three entities following allegations that they had violated provisions of the Listing Obligations and Disclosure Requirements (LODR) Regulations.

Following this, ZEEL and Goenka had filed applications to settle the adjudication proceedings. The panel of Whole-time Members of SEBI rejected the applications and also referred the matter to SEBI for further investigation.

Also read: NESCO's ex independent director pays Rs 21.45 lakh to settle allegations of listing norms violations

The order stated that, following the investigation, it has been decided "to proceed against the Noticees under Section 11B of SEBI Act 1992".

Also, the earlier showcause notice (from July 6, 2022) will be subsumed with the findings of the further investigation carried out by the regulator. "Accordingly, the content of the SCN dated July 06, 2022 issued by the AO including the examination report and all the relied upon documents will be treated as integral part of the further investigation report by SEBI in the matter of ZEEL," the order said.

The contents of the SCN dated July 06, 2022 issued by the Adjudicating Officer (AO) to ZEEL, Chandra and Goenka will also be incorporated in the new SCN to be issued following further investigations.