Zee Entertainment shares plunge 7% after Sebi bars Subash Chandra, Punit Goenka from holding directorial roles

The market regulator on Monday barred Chandra and Goenka from holding the position of a director or key managerial personnel in any listed company for siphoning off funds of the media firm.

ZEEL shares hit an intraday low of Rs 182 on NSE today, down 7 per cent. (File image)

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Shares of Zee Entertainment plunged 7 per cent in early trade on Tuesday after the Securities and Exchange Board of India barred Essel Group chairman Subhash Chandra and Zee Entertainment Enterprises Ltd (ZEEL) MD and CEO Punit Goenka from holding directorial positions.

ZEEL shares hit an intraday low of Rs 182 on NSE today, down 7 per cent. At the time of writing, ZEEL’s stock ended 0.44 per cent lower at Rs 194 on NSE after heavy buying.

The market regulator on Monday barred Chandra and Goenka from holding the position of a director or key managerial personnel in any listed company for siphoning off funds of the media firm.

Sebi said that the were Chandra and Goenka involved in diverting company funds to the group’s related entities. According to the market regulator, Chandra, who was also the chairman of ZEEL during the alleged violation, and Goenka abused their positions as directors or KMPs of a listed company by siphoning off funds for their own benefit.

Chandra and Goenka alienated the assets of ZEEL and Essel Group’s other listed companies for the benefit of associate entities, which are owned and controlled by them, Sebi noted in its interim order.

On Monday, ZEEL shares closed at Rs 194.85 on the National Stock Exchange (NSE).