New Delhi: shares Of zee entertainment Enterprises Limited (Zeal) experienced a significant decline of 12% during mid-session trading on Wednesday. The fall comes after reports indicating a crackdown by the Securities and Exchange Board of India (SEBI) financial discrepancies In the company’s accounts.
ZEEL stock fell 11.58% to Rs 170.65 per share on the Bombay Stock Exchange (BSE), while it fell 11.39% to Rs 170.70 on the National Stock Exchange (NSE).
Moreover, the stock touched its lower circuit limits on both the exchanges. In contrast, the benchmark BSE Sensex rose 90.17 points (0.12%) to 73,147.57 and NSE Nifty rose 40.25 points to 22,237.20.
SEBI’s investigation into Zee’s founders revealed possible misappropriation of around Rs 2,000 crore (US$241 million) from the company.
However, a ZEEL spokesperson has denied these claims, stating that reports related to accounting issues are “inaccurate and false”.
“Reports and rumors related to accounting issues at the company are inaccurate and false,” the spokesperson said.
“As per the order of the Securities Appellate Tribunal (SAT), which has granted relief to the present Key Managerial Personnel (KMP), the Company is in the process of providing all comments, information or clarifications requested by SEBI, and has provided full cooperation – all Action on aspects,” the spokesperson said.
SEBI is in talks with senior officials including Zee founders Subhash Chandra and son Punit Goenka as well as board members to seek clarification on its position.
Shares of ZEEL were up 8% on Tuesday after reports of ongoing efforts to save the US$10 billion merger between Zee and Sony Pictures Networks (India).
ZEEL shares have fallen after the merger with the Indian unit of Sony Group Corp fell apart.
ZEEL stock fell 11.58% to Rs 170.65 per share on the Bombay Stock Exchange (BSE), while it fell 11.39% to Rs 170.70 on the National Stock Exchange (NSE).
Moreover, the stock touched its lower circuit limits on both the exchanges. In contrast, the benchmark BSE Sensex rose 90.17 points (0.12%) to 73,147.57 and NSE Nifty rose 40.25 points to 22,237.20.
SEBI’s investigation into Zee’s founders revealed possible misappropriation of around Rs 2,000 crore (US$241 million) from the company.
However, a ZEEL spokesperson has denied these claims, stating that reports related to accounting issues are “inaccurate and false”.
“Reports and rumors related to accounting issues at the company are inaccurate and false,” the spokesperson said.
“As per the order of the Securities Appellate Tribunal (SAT), which has granted relief to the present Key Managerial Personnel (KMP), the Company is in the process of providing all comments, information or clarifications requested by SEBI, and has provided full cooperation – all Action on aspects,” the spokesperson said.
SEBI is in talks with senior officials including Zee founders Subhash Chandra and son Punit Goenka as well as board members to seek clarification on its position.
Shares of ZEEL were up 8% on Tuesday after reports of ongoing efforts to save the US$10 billion merger between Zee and Sony Pictures Networks (India).
ZEEL shares have fallen after the merger with the Indian unit of Sony Group Corp fell apart.
