Zeel forms interim committee after Sebi bars Punit Goenka to hold managerial roles

Zee Entertainment Enterprises has replaced MD and CEO Punit Goenka with an interim committee of senior executives. The objective is to ensure seamless operations within the media and entertainment firm.

 The development comes almost a month after the Securities and Exchange Board of India (SEBI) issued an interim order on June 12, preventing Goenka and the Chairman of Essel Group, Subhash Chandra from occupying top managerial roles in any listed company.

 Despite the company's appeal against the SEBI order, the Securities Appellate Tribunal (SAT) has declined to grant a stay on it.

 In an internal email, Goenka wrote, “Over the last one month or so, there have been a lot of words that might have caught your attention. Especially the ones that came with a tinge of negativity. And hence I thought, it is important for me to pen down this note for all of you, to ensure that there is the utmost level of clarity and transparency.”

“As you all might have noted, on June 12, 2023, I was served with an ex-parte order by the SEBI, concerning certain transactions conducted at an Essel Group level in the year 2019. With the help of legal experts, I am exercising my legal rights to seek justice. SAT has given a hearing to the matter and has passed an order on July 10, 2023, setting a framework for this process. In line with the order and in accordance with the law, I am taking the next steps. There is nothing more to it,” he added.

Furthermore, he added that since the order restricts him from holding a directorial or key managerial position in a listed company, in the interim, the Board of our Company has constituted an Interim Committee of senior executives to ensure smooth operations and day-to-day functioning. The Interim Committee will be under the supervision of the Board and will seek its guidance on all matters pertaining to the Company.

He added that the important point to focus on is not what is happening to him but what is happening, or should happen to our great Company.

 “The important point to be excited about is the fact that this Company is all set to merge with the most prestigious global media and entertainment brand - Sony. And hence, I write to you today, more as a colleague and as a team member of yours, to make a humble request. Please do not let any tinge of negativity distract you from the set goals for this Company. The problems or difficulties that I might be facing at a promoter family level, are for me to deal with; and which I am. Those should never be the problems of the Company. For all of us, starting with me, the company and its esteemed Shareholders have been and should always be, the topmost priority,” Goenka wrote.

 The proposed merger with Sony has reached a very important juncture. The Mumbai Bench of the National Company Law Tribunal (NCLT) has reserved its order for approval in the final stage of the hearing conducted on July 10, 2023. The merger has already been cleared by the Competition Commission of India (CCI), Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and above, by the esteemed shareholders of our Company, he stated.

 "The Board of ZEE Entertainment Enterprises. (ZEEL) in a meeting conducted on July 14, 2023, evaluated and discussed all the necessary steps, in light of the interim order passed by the Securities and Exchange Board of India (SEBI) and the subsequent judgement by the Securities Appellate Tribunal (SAT). Since the order restricts Punit Goenka from holding the position as director or key managerial position in a listed company, the Board of the Company has constituted an Interim Committee of senior executives to ensure smooth operations of the Company,” a company spokesperson said.

 “The Interim Committee will be under the supervision of the Board and will seek its guidance on all matters pertaining to the Company. The Board continues to have immense faith in the value-building leadership skills showcased by Punit Goenka and will monitor the progress of the matter. The Board also remains confident that the Company will deliver robust growth consistently and generate higher value for all shareholders," a company spokesperson said.

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