Zee reviewing legal options after SEBI's order; Zee-Sony merger may face delays

Zee Group's board has said it is going through the detailed order by capital markets regulator SEBI, in which Subhash Chandra and Punit Goenka have been barred from holding any key positions in any listed entities.

Following the SEBI order, shares of Zee plunged on opening, however the stock recovered, closing the day just marginally in the red.

In a report by BQ Prime, Zee Chairman, R Gopalan, said that appropriate legal counsel is being engaged in order to take the necessary next measures. Meanwhile, the Securities Appellate Tribunal will reportedly hear the matter on Thursday.

As per experts, the SEBI order can prove to be a big risk to the Zee-Sony merger and could also lead to extensive delays.

SEBI barred Subhash Chandra, the chairman of the Essel Group, and his son Punit Goenka, MD and CEO of Zee Entertainment Enterprises (ZEEL), from holding any directorial or senior managerial positions in any listed company.

SEBI's interim order issued late on Monday, was the result of an inquiry that revealed that the two had abused their board seats at Zee, siphoning off funds for their own benefit.