SEBI’s ban on Zee from securities market puts warrants issuance in limbo: inGovern
Zee Entertainment Enterprises approved the issue of ₹3,143.5 crore worth of fully convertible warrants to promoter group entity Sunbright Mauritius Investments Ltd. on a preferential basis.
Zee Entertainment Enterprises was set to issue ₹3,143.5 crore worth of fully convertible warrants to its promoter group, but SEBI's recent ban on the company from the securities market has put the warrant issuance in jeopardy. The market regulator had imposed a two-month ban on Zee, a ₹1.48 crore fine, and banned promoters Subhash Chandra and Punit Goenka from dealing in securities for a year.
InGovern, a proxy firm, urged the company to focus on transparency and accountability in light of these governance failures. Zee maintains that the SEBI order does not impact its fundraising efforts and is seeking legal advice on the matter.
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