Business

SEBI Discovers ₹2000 Crore Accounting and Funds Discrepancy at Zee Entertainment Enterprises

India’s market regulator, the Securities and Exchange Board of India (SEBI), has uncovered a significant financial discrepancy exceeding $240 million or around ₹2,000 crore in the accounts of Zee Entertainment Enterprises, as reported by Bloomberg.

Probe and Company Responses

SEBI’s investigation into Zee founders has revealed that approximately ₹2,000 crores ($241 million) may have been redirected from the company, a sum nearly ten times higher than initially estimated. The regulator has summoned senior officials, including Subhash Chandra, Punit Goenka, and certain board members, for explanations. While SEBI’s spokesperson did not respond to queries, a Zee spokesperson stated that the company is cooperating with the ongoing probe.

Impact on Zee CEO and Merger Attempt

Also read: Stock Markets Continue To Rise For Sixth Consecutive Day, With Nifty Reaching A New High

These revelations pose challenges for Zee CEO Punit Goenka as he seeks to reassure investors following the collapse of the merger with Sony. The terminated $10 billion merger plan aimed to leverage Zee’s content library to strengthen Sony. Zee reported a significant decline in profit, further complicating the situation. Despite reports of re-engagement with Sony for a potential merger revival, significant differences persist.

Background of Regulatory Wrangling

Conflicts between Sony and Zee arose amid SEBI’s investigation into alleged financial improprieties involving Zee’s founders. Sony’s apprehension about Goenka’s leadership and Goenka’s insistence on his CEO position led to the deal’s termination in January. SEBI’s order in August barred Zee founders from executive positions, though Goenka secured a partial reprieve allowing him to hold an executive position during the ongoing probe.

Srushti Sharma

Recent Posts

JP Nadda Slams Rahul Gandhi’s ‘Match-Fixing’ Claims As ‘Desperation Of Losing’ Polls

Rahul Gandhi's opinion piece appeared in a national daily and sparked political uproar. Opposition parties…

10 hours ago

Poverty In India Reduced Via Tangible Boost In Household Living Standards, Incomes

In 2022–23, poverty under the revised $3.00 line stood at just 5.25 per cent in…

10 hours ago

Chhattisgarh: Seven Maoists Killed In Indravati National Park Operation

Five Maoists were killed in two separate encounters with security forces in Chhattisgarh’s Bijapur district,…

11 hours ago

Carney Invites Modi To G7 Summit, Highlights India’s Global Supply Chain Role

Canadian Prime Minister Mark Carney said the most populous country, with the fifth-largest economy, must…

11 hours ago

RBI Frontloads Rate Cuts To Boost Growth Amid Low Inflation: Crisil

The Reserve Bank of India (RBI) has frontloaded its rate cuts to support economic growth,…

12 hours ago

PM Modi Urges Global Action On Coastal Resilience At Nice Summit

PM Narendra Modi on Saturday called for urgent global action to build infrastructure that can…

12 hours ago