Reuters
[Source: Reuters]
An Indian tribunal lifted a ban on Punit Goenka from holding board positions in any of the Zee Group companies, paving the way for him to head the entity formed by the planned merger of Zee Entertainment and Sony’s Indian business.
The Securities Appellate Tribunal (SAT) ruled that the Securities and Exchange Board of India’s (SEBI) view that Goenka might cause risk to the merged company’s assets was “patently erroneous” as it would have a separate corporate structure.
The SAT said that Goenka will cooperate with any further investigation by India’s markets regulator, which in an August interim order barred Goenka and Zee Group Chairman Subhash Chandra from holding positions in Zee company boards.
The SEBI alleged that Goenka, who is managing director of Zee Entertainment (ZEE.NS), and Chandra were actively involved in diverting company funds to the Zee Group’s other listed entities and firms related to its founding shareholders.
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