During the hearing, SEBI’s counsel also admitted that no charges of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) violations had been made against Zee in the impugned order in relation to dealing in securities.
The Securities Appellate Tribunal (SAT) on Friday stayed the Securities and Exchange Board of India’s (SEBI) two-month debarment of Zee Entertainment Enterprises and Punit Goenka to the limited extent needed to allow the company to complete its proposed preferential issue of fully convertible warrants to a promoter group entity.The tribunal said Zee and Goenka can complete the warrant issue, subject to both depositing the full penalty within one week. SEBI has been directed to keep the deposits in an interest-bearing account.SAT has also extended the deadline for issuing of warrants, which expired on Friday, by one week. Zee has also been allowed to undertake mutual-fund transactions for its day-to-day business requirements, but not for any other purpose, including payment of the proposed dividend.The debarment will otherwise continue, with the exception of the relief granted for the warrant issue and day-to-day mutual-fund transactions. The shares of the company closed 5.5 per cent higher on Friday.‘Defeats logic’SAT said 76.64 per cent of the public shareholders had approved the warrant issue at the company’s extraordinary general meeting on July 31. It said that about 96 per cent of Zee’s shareholders are public shareholders and that the warrant issue is expected to bring in over ₹3,100 crore into the company.The tribunal also said that SEBI had no objection to the proposed investment being made after the two-month debarment period. It said this position “defeats logic” because no other legal bar to the investment had been pointed out apart from the debarment direction itself.During the hearing, SEBI’s counsel also admitted that no charges of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) violations had been made against Zee in the impugned order in relation to dealing in securities.Zee’s pleaZee had argued that its share price had fallen considerably following SEBI’s order and that further delay could jeopardise the proposed capital raise. The company also said the issue was approved by shareholders and had to be completed within the regulatory timeline.SAT, however, clarified that its observations on the interim relief were based on the facts at the admission stage and that the other contentions raised by both sides remain open for consideration at the final hearing.Published on August 14, 2026
