The Securities and Exchange Board of India (SEBI) has modified its earlier order against Subhash Chandra and Punit Goenka, founders of Essel Group, restricting them from holding the positions of directors or key managerial personnel (KMP) in several Zee Group companies. The new order also extends to the merged entity of Zee Entertainment Enterprises (ZEEL) and Sony Pictures Networks India, now known as Culver Max Entertainment. This restraint will be in effect until SEBI concludes its investigation into alleged fund diversion by the individuals.
SEBI Chairperson Madhabi Puri Buch stated that the investigation would be completed within eight months from the date of the order. The modifications were made after considering material evidence and submissions from the entities involved.
The order specifically bars Punit Goenka from becoming the Managing Director of Culver Max Entertainment, the merged entity of ZEEL and Sony Pictures Networks India. The merger, which received approval from the National Company Law Tribunal (NCLT) on August 10, prompted SEBI's adjusted directive.
In its June 12 order, SEBI had initially prohibited Subhash Chandra and Punit Goenka from becoming directors or KMPs in any listed company. However, the promoters of Zee Group argued that the order's scope and time frame were indefinite, leading to the modification.
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