SEBI rejected the settlement applications of Zee Entertainment
The market regulator has rejected the settlement applications filed by Zee Entertainment Enterprises (ZEEL) and ZEEL’s CEO, Punit Goenka. Further investigation will be conducted into both entities and Essel Group’s Chairman, Subhash Chandra.
Under the SEBI (Settlement Proceedings) Regulations 2018, entities facing or about to face proceedings can seek to settle by paying a fee and/or meeting non-monetary terms.
The adjudication order issued by the Securities and Exchange Board of India (SEBI) on January 2 stated that a new show cause notice (SCN) will be issued to ZEEL, Chandra, and Goenka. This notice will include findings from a previous SCN and the results of additional investigation.
The regulator had previously issued an SCN on July 6, 2022, to the three entities for alleged violations of the Listing Obligations and Disclosure Requirements (LODR) Regulations. ZEEL and Goenka had applied to settle the proceedings, but their applications were rejected by the panel of Whole-time Members of SEBI. The matter has now been referred for further investigation under Section 11B of the SEBI Act 1992.
The findings of the earlier SCN will be combined with the results of the additional investigation. The content of the July 6, 2022, SCN issued by the Adjudicating Officer (AO) will be considered an integral part of the new investigation report by SEBI.
The details of the July 6, 2022, SCN issued by the AO to ZEEL, Chandra, and Goenka will also be included in the new SCN following the further investigations.
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