Punit Goenka moves SAT again, seeks stay on SEBI ban

The confirmatory order barred Goenka and his father Subhash Chandra from holding the position of a director or a KMP (key managerial personnel) in ZEEL

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Punit Goenka, former chief executive officer of Zee Entertainment Enterprises Ltd, has moved the Securities Appellate Tribunal (SAT) the second time, challenging the SEBI order that bars him from director’s or other key managerial positions in ZEEL and other firms.

He moved SAT on August 25 seeking relief from the confirmatory order passed by the Securities and Exchange Board of India on August 14 in a fund diversion case.

The order bars Goenka and his father, Subhash Chandra, from holding the position of a director or a being a key managerial personnel (KMP) in ZEEL, other public listed companies, their wholly owned subsidiaries or in any resultant company that is formed pursuant to a merger.

It is only Goenka who has moved SAT and not Chandra, CNBC-TV18 reported. SAT will hear the matter on August 30.

Also Read: NCLT clears Zee Entertainment merger with Sony

SEBI's confirmatory order followed its interim order in June. The father-son duo had also approached the SAT for a stay on the interim order as well but their pleas were rejected.

According to reports, Goenka is likely to question how he can be kept out of office during the duration of the probe.

SEBI chairperson Madhabi Puri Buch has assured that the investigation in the case would be completed within eight months.

The market regulator has alleged that the duo helped move funds out of ZEEL and routed them back to the company through layered and circuitous transactions They did so by “falsely portraying that ZEEL had received the dues from associate entities”, it said.

These developments coincide with the National Company Law Tribunal (NCLT) approving the merger of ZEEL with Culver Max Entertainment, earlier Sony Pictures Networks India.

In December 2021, Zee Entertainment and Sony Pictures reached an agreement to combine their businesses.

Subsequently, they sought the tribunal’s approval for the merger, having obtained necessary permissions from the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and other regulatory bodies like the Competition Commission of India (CCI) and SEBI.

The merger will create a $10-billion media giant, with the combined entity owning over 70 TV channels, two video streaming services — Zee5 and SonyLiv — and two film studios— Zee Studios and Sony Pictures Films India.