Zee Entertainment shares under pressure as Sebi bans 5 persons in insider trading case
Bijal Shah, Gopal Ritolia, Jatin Chawla, Gomti Devi Ritolia and Daljit Chawla are restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders," Sebi said.
September 28, 2021 / 09:53 AM IST
Zee Entertainment Enterprises share price was trading lower by over 2 percent in the morning session on September 28 after Sebi confirmed ban on five persons in Zee Entertainment insider trading case.
Sebi on September 27 confirmed its earlier directive passed against five persons wherein they were barred from the securities market for indulging in insider trading in the scrip of Zee Entertainment Enterprises.
"Bijal Shah, Gopal Ritolia, Jatin Chawla, Gomti Devi Ritolia and Daljit Chawla are restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders," Sebi said in its 43-page confirmatory order.
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However, they have been allowed to buy and sell units of mutual funds.
Sebi will pass a separate order after giving an opportunity of hearing to the other entities who are not covered in the interim order but against whom the interim order has been passed.
The stock has been in focus after rallying over 84 percent in the last 1 month. Its largest shareholder Invesco persisted with the demand for calling an extraordinary general meeting (EGM), seeking a newly reconstituted board and the removal of MD & CEO Punit Goenka.
Invesco, however, did not reject the deal negotiations with Sony and highlighted in the letter that the business of Zee Entertainment Enterprises was valuable, "whether on its own or in strategic alignment with partners such as Sony".
“A newly constituted board supported with the strength of independence will be best suited to evaluate and oversee the potential for strategic transactions, like the one announced on 22 September 2021 on a non-binding basis, as well as to make determinations on the future leadership of the Company,” it said.
The stock was trading at Rs 315.15, down Rs 7.20, or 2.23 percent. It has touched an intraday high of Rs 323.00 and an intraday low of Rs 312.45.