NEW DELHI: Shares of Zee Entertainment Enterprises Ltd (ZEEL) experienced a significant drop of 12% during mid-session trading on Wednesday. The drop comes after reports suggesting that the Securities and exchange board of India (Sebi) has uncovered financial inconsistencies in the company’s accounts.
On the Bombay Stock Exchange (BSE), ZEEL stock plummeted by 11.58% to Rs 170.65 per share, while on the National Stock Exchange (NSE), it fell by 11.39% to Rs 170.70.
Moreover, the stock hit its lower circuit limit on both exchanges. In contrast, the BSE Sensex benchmark rose by 90.17 points (0.12%) to reach 73,147.57, and Nifty of NSE increased by 40.25 points, reaching 22,237.20.
Sebi’s investigation into Zee’s founders revealed a potential diversion of approximately Rs 2,000 crore (USD 241 million) from the company.
However, a spokesperson for ZEEL has refuted these claims, stating that the reports regarding accounting issues are “incorrect and false”.
“The reports and rumours pertaining to accounting issues in the company are incorrect and false”, the spokesperson said.
“Pursuant to the Securities Appellate Tribunal (SAT) order, which granted relief to the current Key Managerial Personnel (KMP), the company has been in the process of providing all the comments, information or explanation requested by SEBI, and has extended complete co-operation on all aspects,” the spokesperson added.
Sebi has been engaging with senior officials at Zee, including its founders Subhash Chandra and son Punit Goenka, as well as board members, to receive clarifications on their position.
ZEEL shares had surged by 8% on Tuesday following reports of ongoing efforts between Zee and Sony Pictures Networks (India) to salvage their USD 10-billion merger.
ZEEL shares have plummeted following the breakdown of its merger with Sony Group Corp’s India unit.
On the Bombay Stock Exchange (BSE), ZEEL stock plummeted by 11.58% to Rs 170.65 per share, while on the National Stock Exchange (NSE), it fell by 11.39% to Rs 170.70.
Moreover, the stock hit its lower circuit limit on both exchanges. In contrast, the BSE Sensex benchmark rose by 90.17 points (0.12%) to reach 73,147.57, and Nifty of NSE increased by 40.25 points, reaching 22,237.20.
Sebi’s investigation into Zee’s founders revealed a potential diversion of approximately Rs 2,000 crore (USD 241 million) from the company.
However, a spokesperson for ZEEL has refuted these claims, stating that the reports regarding accounting issues are “incorrect and false”.
“The reports and rumours pertaining to accounting issues in the company are incorrect and false”, the spokesperson said.
“Pursuant to the Securities Appellate Tribunal (SAT) order, which granted relief to the current Key Managerial Personnel (KMP), the company has been in the process of providing all the comments, information or explanation requested by SEBI, and has extended complete co-operation on all aspects,” the spokesperson added.
Sebi has been engaging with senior officials at Zee, including its founders Subhash Chandra and son Punit Goenka, as well as board members, to receive clarifications on their position.
ZEEL shares had surged by 8% on Tuesday following reports of ongoing efforts between Zee and Sony Pictures Networks (India) to salvage their USD 10-billion merger.
ZEEL shares have plummeted following the breakdown of its merger with Sony Group Corp’s India unit.
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