The Securities Appellate Tribunal (SAT) on Wednesday reserved its order on interim relief pleas filed by Zee Entertainment Enterprises and managing director Punit Goenka against an order by the Securities and Exchange Board of India (SEBI) barring them from accessing the securities market.
Zee and Goenka have sought a stay on the market-access restrictions and relief to proceed with its ₹3,143.5 crore preferential issue of fully convertible warrants to promoter group entity Sunbright Mauritius Investments as the company has a limited window to complete the fundraise.
Senior Advocate Ravi Kadam, representing Zee, said there is a 15-day window under Regulation 170 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations to be counted from August 12 for the company to implement the resolutions approved by shareholders and stock exchanges.
Delaying the issue could prejudice the company because the warrant price is linked to the market price and a lower share price after two months could result in a recalculation and potentially reduce the premium that the promoter entity is currently willing to pay, Kadam said.
Tribunal questions
