Zee down 5%, investors unimpressed by firm’s probe panel move

Shares of Zee Entertainment Enterprises fell more than 5 percent on February 28, a day after the media company said it had set up a panel to examine the allegations levelled against the company, its promoters and key managerial personnel by regulatory bodies.

“Independent Investigation Committee” would be headed by Justice (retired) Satish Chandra.

“The committee will take the necessary measures to delve into the facts of the allegations, with the sole interest to protect the rights of the company’s shareholders and other stakeholders,” Zee said in a release.

Investors, however, seemed unimpressed with the decision. At 1.51 pm, Zee was trading at Rs 164.15 on NSE, down 5 percent from the previous close.

The stock has tanked 41 percent this year, underperforming the benchmark Nifty, which has risen over a percent during the period.

The panel whose members include Zee’s independent directors, Uttam Prakash Agarwal and PVR Murthy, will present a detailed report to the company’s board advising it on the future course of action.

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“Based on the recommendations of the audit committee and after seeking inputs from Justice Chandra, an independent assessment and fact-checking of all allegations will be ensured. The board will also suggest the measures to be implemented in the interest of the Company, once the detailed report is presented by the Committee,” Zee chairman R Gopalan said.

The announcement came amid the ongoing probe by market regulator Sebi against its promoters for fund diversion. Zee’s managing director Punit Goenka, the son of the company’s founder Subhash Chandra, is under the SEBI radar for his alleged role in siphoning off company funds.

Both Chandra and Goenka were barred last year by the market regulator from occupying any managerial position in the company. However, the ban on Goenka was overturned by the Securities Appellate Tribunal (SAT) in October 2023.

Also Read | Zee constitutes panel to examine allegations levelled against company

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