Securities and Exchange Board of India (SEBI) has issued a settlement order worth Rs 7 lakh in the case of an alleged insider trading norm breach in 2019 by Zee Entertainment Enterprises Limited.
The matter related to delayed disclosure of the invocation of pledged shares to the exchanges, which meant the company violated the prohibition of insider trading norms.
SEBI conducted an investigation into the shares of Zee Entertainment, which is listed on BSE and NSE, from January to December 2019.
In its report, the market watchdog observed that the company had made delayed disclosure – 54 days in three instances and 27 days in two instances – to exchanges with respect to the invocation of pledged shares.
It was alleged that Zee has violated regulation 7 (2) (b) of the PIT regulations.
The regulator initiated adjudication proceedings against the company under section 15A (b) of the SEBI Act against the company.
K Saravanan was appointed as an adjudicating officer to conduct proceedings and impose penalties if deemed fit.
The representatives from Zee Entertainment met with the internal committee of SEBI on 10 January 2023.
The company offered to settle the pending proceedings, without admitting or denying the findings of fact through a settlement order.
SEBI’s high-powered advisory committee agreed and approved the payment made by the company and disposed of the proceedings in April.
The settlement is the latest among a series of proceedings settled by Zee Entertainment in recent months.
Last week, SEBI barred Chairman Emeritus Subhash Chandra and Managing Director Punit Goenka from holding any directorial positions until further notice.
