SAT gives ZEE big relief in its hunt for ₹3,143 cr issue

Shares of Zee Entertainment Enterprises (ZEEL) surged 8% to Rs 105 on the BSE on Friday, following a positive decision from the Securities Appellate Tribunal (SAT) in the company's dispute with SEBI. The tribunal granted interim relief, allowing ZEE to proceed with its proposed Rs 3,143 crore preferential warrant issue to promoters.

This relief is contingent upon the company depositing the penalty imposed by SEBI. The SAT also ruled that ZEE could utilize its mutual fund units for dividend distribution. This decision comes after SEBI barred the company from accessing the securities market due to alleged title documents issues related to a Hyderabad property owned by ZEEL.

ZEEL has contested these claims, asserting that the documents were obtained without authorization and that they were not aware of any fraudulent activities. The company sought permission to complete the warrant issue, citing an impending deadline, while SEBI argued that permitting the issue during the market-access ban would undermine the effectiveness of the regulatory action.

SEBI further objected to CEO Punit Goenka's involvement in the issue, citing his status as the ultimate beneficial owner of the Mauritius-based entity.