Indian tribunal allows Zee Entertainment to proceed with warrants issue; shares rise
BENGALURU: An Indian appeals tribunal granted Zee Entertainment partial relief from a securities market ban on Friday, allowing the television broadcaster to proceed with a fundraise through an issue of warrants. The Securities Appellate Tribunal, which hears appeals against orders passed by the Securities and Exchange Board of India, allowed Zee to issue fully convertible warrants to a promoter…
On Friday, an Indian appeals tribunal gave Zee Entertainment partial permission to continue with a securities market ban. The Securities Appellate Tribunal, which reviews decisions made by the Securities and Exchange Board of India, allowed Zee to issue fully convertible warrants to a group of promoters on preferential terms, according to a court document. Zee's shares surged 5.7% on Friday following the ruling.
In July, SEBI imposed a two-month ban on Zee from participating in the securities markets, along with a one-year restriction on CEO Punit Goenka and Founder-Chairman Emeritus Subhash Chandra. Last month, Zee approved the issuance of warrants worth 31.44 billion rupees ($329.5 million). The tribunal stated that the company's prohibition from the securities markets would endure, except for the limited allowance to conclude the warrant issue.
The tribunal also gave Zee an additional week to complete the warrant issue, which was set to end on August 14.
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Also reported by 1 other outlet
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