The Securities and Exchange Board of India (SEBI) has ruled said that Essel Group founder Subhash Chandra and his son Punit Goenka cannot hold director positions in group companies, including Zee Entertainment Enterprises, Zee Media Corp and the proposed Zee-Sony merged entity, until the investigation by the regulator ends.
The market regulator, in its order issued Monday, has instructed its investigating officials to conclude their inquiry within eight months. The two are being investigated by SEBI for alleged fund diversion.
In its June 12 directive, the father-son duo had been barred from assuming directorial positions in any listed company.
The development as good as rules out Punit Goenka’s holding an executive position in the recently approved Zee-Sony merged company, which secured the green light from the National Company Law Tribunal (NLCT) last week.
Following NCLT’s nod, Sony-Zee are expected to soon file papers with the Registrar of Companies (ROC) and if all goes as per plan, the merged company could come into existence as soon as September-October.
The order barring the two from being directors in any listed company was originally passed on June 12 and was modified on August 14.
Sebi chairperson Madhabi Puri Buch signed the 91-page order, which now stands to impact Punit Goenka’s role in the Zee-Sony merged entity, which was approved by NLCT last week.
