SEBI Discards Zee, Punit Goenka's Settlement Applications On Violations Of Norms

SEBI Discards Zee, Punit Goenka's Settlement Applications On Violations Of Norms

Orders merging contents of the notices with a broader probe

The Securities and Exchange Board of India (SEBI) has dismissed settlement applications filed by Zee Entertainment Enterprises (ZEEL) and Punit Goenka and referred the matter for further investigation.

In its order, the market regulator dropped the show-cause notices (SCN) issued against Zee, Subhash Chandra, Director and former Chairman of the company, and his son Punit Goenka, Executive Director, CEO and MD, for alleged violations of its regulations.

The three-page order read, "The allegations in the 06 July 2022 SCN issued by the Adjudicating Officer (AO) will be subsumed with the findings of further investigation carried out by the SEBI. Accordingly, the content of the SCN, including the examination report and the documents relied upon, will be treated as an integral part of the investigation report.”

The case relates to adjudication proceedings initiated against Zee under Section 23E of the Securities Contracts (Regulation) Act, 1956.

On 28 October 2021, SEBI appointed Parag Basu as the AO, but on 27 December 2024, the case was assigned to AO Amit Kapoor.

Meanwhile, Zee and Goenka filed applications to settle the proceedings initiated against them.

However, a panel of SEBI’s Whole-Time Members rejected the applications, referring the matter to SEBI for further probe.

The order said, "It has been observed that subsequent to completion of the investigation, the competent authority must proceed against the noticees under Section 11B of the SEBI Act, 1992.”