SEBI issues SCN to Zee Entertainment; revives allegations of fund diversion
SEBI issues SCN to Zee Entertainment; revives allegations of fund diversion
The Mumbai-based broadcaster has been probed for over two years for internal financial dealings
The Securities and Exchange Board of India (SEBI) has issued a show-cause notice to Zee Entertainment Enterprises Ltd. and its Chairman and CEO, reviving allegations of fund diversion and governance lapses that derailed its planned merger with Sony Pictures Networks India.
A spokesperson for Zee, the Mumbai-based broadcaster, said the company would respond formally to the notice. “The company has received a show-cause notice from SEBI pertaining to certain allegations made in 2019 by vested interests. SEBI initiated an investigation which was unduly prolonged.”
Meanwhile, the regulatory scrutiny posed obstacles to Zee’s merger with Sony, which was abandoned in January 2024 after two years of legal disputes.
Zee maintained that SEBI’s investigation disrupted its strategic plans, including the merger, causing significant losses to shareholders.
The company reiterated that all allegations against it and members of its board were false. Zee stressed its commitment to the ‘highest standards of governance’ and readiness to pursue legal remedies.
The standalone broadcaster faces a shifting media landscape dominated by the joint venture between Walt Disney Co. and Reliance Industries Ltd’s Viacom 18 Media Pvt., which hold a commanding share of cricket broadcasting rights.
