ZEE settles the 2019 delayed disclosure case with SEBI for ₹7 lakh

Zee Entertainment Enterprises Ltd on Wednesday settled with markets regulator Sebi in a 2019 case pertaining to an alleged violation of regulatory norms.

Zee Entertainment Enterprises Ltd (ZEEL) paid ₹7 lakh as a settlement fee to the regulator.

The order came after ZEEL proposed to settle the pending proceedings "without admitting or denying the findings of fact and conclusion of law" through a settlement order.

The instant adjudication proceedings initiated against the applicants (ZEEL) vide show cause notice (SCN) dated July 15, 2022, are disposed of," Sebi's Adjudicating Officer Vijayant Kumar Verma said in the settlement order.

Background of the matter

Sebi conducted an examination in the scrip of the applicant (ZEEL), to ascertain any possible violation of the provisions of insider trading norms and SAST (Substantial Acquisition of Shares and Takeovers) during January-December 2019 by the applicant.

The regulator in its examination report observed that ZEEL made delayed disclosure (54 days in three instances and 27 days in two instances) to the exchanges with respect to the invocation of pledged shares.

Therefore, it was alleged that ZEEL violated PIT (Prohibition of Insider Trading) rules. Accordingly, the regulator initiated adjudication proceedings against the Applicant for violating the market norms.

Thereafter, a show cause notice was issued in July 2022 to Zee Entertainment Enterprises Ltd for the alleged violation of regulatory norms.

Following this, ZEEL filed the settlment application with Sebi and proposed to settle the alleged violations on payment of ₹7 lakh as settlement