File picture of Punit Goenka
The Securities Appellate Tribunal on Monday lifted the ban on Zee Entertainment top boss Punit Goenka to hold board positions in any of the four Zee Group companies, paving the way for him to resume the proposed role in the planned merger between ZEE and the Indian unit of Japan’s Sony Group.
Shares of Zee Entertainment rose as much as 3.7% post the order.
India markets regulator, Securities Exchange Board of India (SEBI), in August, had barred Goenka and Zee Group Chairman Subhash Chandra from holding positions in Zee company boards alleging they were actively involved in diverting company funds to the group’s other listed entities and firms related to founding shareholders.
The SAT’s verdict on Chandra was not announced by 12 pm.
Zee Group had announced a merger of ZEE with Sony’s Indian business in 2021, but the move was delayed due to an interim SEBI order which had restrained Goenka from directorships of any listed companies.
In August, the company tribunal had approved the merger creating a $10 billion company.
While acknowledging the SAT order, Zee said in a statement that Goenka will cooperate with any further investigations by the regulator.