Punit Goenka Cannot Hold Office in Merged Sony-Zee Company Until Investigation Concludes, Indian Regulator Rules
variety.comZee Entertainment Enterprises (ZEEL) MD-CEO Punit Goenka will not be able to hold any office in the merged Sony-Zee entity for now, market regulator Securities and Exchange Board of India (SEBI) has said.
In June, SEBI had barred Goenka and ZEEL chair emeritus Subhash Chandra from holding any managerial or directorial positions in listed companies while it carried out investigations into allegations of insider trading.
The merger cleared a key regulatory hurdle last week. Under the original terms of the deal Goenka would lead the merged outfit, while Sony would own a 51% controlling stake.
On Monday, SEBI upheld the June order and barred Goenka and Chandra from joining the management of ZEEL, Zee Media Corporation, Zee Media Corp and Zee Aakash News and “any resultant company that is formed pursuant to a merger or amalgamation of the above named companies with any other company, wholly or in part” and also “any company, which is formed pursuant to demerger of any of the above named companies.” SEBI’s detailed 91-page order states: “Post-merger, Entity No.
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