SAT sets aside SEBI's order; allows Punit Goenka to hold key managerial positions

The Securities Appellate Tribunal (SAT) on Monday overturned the August 14 order issued by the Securities and Exchange Board of India (SEBI) that had prohibited Punit Goenka of Zee Entertainment Enterprises from assuming key directorship roles in listed entities due to an alleged fund-diversion case.

This decision now enables Goenka to return to his positions as managing director and CEO of Zee, where he will lead one of the largest merged entities in the media and entertainment sector following the merger with Sony.

It's worth noting that the tribunal has granted permission for SEBI to persist with its ongoing investigation.

The regulator is expected to challenge the tribunal's decision in the Supreme Court.

After hearing both the parties, the order was reserved on September 27.

A panel headed by Justice Tarun Agarwala said, "In view of the aforesaid the Sebi order cannot be sustained and is quashed. The confirmatory order passed by Sebi on 14 August is set aside. The appeal is allowed. The appellants however will co-operate in the ongoing investigation."

On August 14, SEBI chief Madhabi Puri Buch had passed an order that restrained Goenka and his father, Subhash Chandra, from holding key positions in publicly traded companies until further notice.

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