Sebi will reportedly question Zee top brass, including founder Subhash Chandra and CMD Punit Goenka as it tries to unravel allegations of fund diversion at the media firm.
Several past and current board members will be also examined in the probe that is expected to stretch till April. The regulator may, according to an Economic Times report, then consider legal proceedings based on its findings.
A June probe by the regulator found diversion to the tune of Rs 200 crore through related party transactions, a charge contested by Zee before the Securities Appellate Tribunal. Following this Sebi launched a wider probe on the firm's financial dealings.
ZEE shares tumbled 14.8% on the BSE on Wednesday to close at Rs 164.50 apiece, after a Bloomberg report claimed Sebi found that about $241 million (Rs 2,000 crore) might have been diverted by the company promoters. This has added to the steep decline in the ZEE share price after Sony Group scrapped a $10-billion merger plan involving its India business.
The regulatory probe into the father-and-son duo’s alleged financial improprieties has led to much wrangling between Sony and Zee since mid-2023. It made Sony wary of letting Goenka helm the merged entity while Goenka refused to give in as the CEO spot was promised to him in the 2021 merger pact. The standoff ultimately led to Sony scuttling the deal in January.
A spokesperson for Zee, however, panned the report saying: '"The reports and rumours pertaining to accounting issues in the company are incorrect and false. Pursuant to the SAT order, which granted relief to the current key managerial personnel (KMP), the company has been in the process of providing all comments, information or explanations requested by Sebi, and has extended complete cooperation on all aspects."