The promoters of Zee Entertainment Enterprises Ltd have approached the Securities Appellate Tribunal (SAT) to seek relief against the SEBI's order on Tuesday. According to a report by Bussines Standard, SAT will take up the matter for admission on June 15. Shares of Zee Entertainment Enterprises fell over 6.50 per cent in morning trade on Tuesday after SEBI banned Essel Group chairman Subhash Chandra and ZEEL's Punit Goenka from holding any directorial or key managerial position in any listed firm.
According to the report promoters' lawyer said before its interim order SEBI had not given a show cause notice. He also said that the market regulator also did that indicate any urgency for implementing a ban on them. The lawyer said that Sebi’s order had led to a steep fall in the stock prices.
A day after the SEBI barred Zee the promoters, Zee Entertainment Chairman R Gopalan said the board was reviewing the order.
"The Board is currently in the process of reviewing the detailed order, and appropriate legal advice is being sought in order to take the next steps as required. With a singular focus on enhancing the shareholder value year after year, the Board of the company has continued to guide the management towards its strategic goals and priorities for the future," Gopalan said in a statement.
The SEBI in an interim order on Monday barred Subhash Chandra and Punit Goenka from holding the position of a director or key managerial personnel (KMP) in any listed company for siphoning off funds of the media firm. The case pertains to Chandra, who was also the chairman of Zee Entertainment Enterprises Ltd (ZEEL) during the alleged violation, and Goenka having abused their position as directors or KMPs of a listed company for siphoning off funds for their own benefit.
In its interim order, SEBI noted that Chandra and Goenka alienated the assets of ZEEL and other listed companies of Essel Group for the benefit of associate entities, which are owned and controlled by them.