SEBI Barred Zee Ent’s Subhash Chandra & Punit Goenka from holding directorship

The Securities and Exchange Board of India (SEBI) has barred the Chairman of Essel Group Subhash Chandra Goenkaand  PunitGoenka, CEO of Zee Entertainment, from holding any significant Directorial or Key Managerial post until further notice.

In an investigation, it was found that Chandra and Punit Goenka exploited their positions as Zee Entertainment directors in 2019 for their own benefit. Despite holding only a 3.99% stake in Zee Entertainment, Subhash Chandra and Punit Goenka remain in control of the company.

The market regulator investigated the case, and it was discovered that Chandra, the then-chairman of Zee Entertainment, gave a ‘Letter of Comfort’ for credit facilities obtained by certain group companies from Yes Bank.

During the investigation, SEBI discovered that Chandra and Goenka were signing comfort letters on behalf of Zee Entertainment without informing, consulting, or seeking approval from the board, in violation of the disclosure standards. SEBI has given 21 days to file their responses to the interim order.