Shares of Zee Entertainment Ltd fell as much as 6.6% on Tuesday after India’s markets regulator barred its promoters from holding board positions in any publicly listed company, potentially delaying its merger with a local unit of Japan’s Sony.
The Securities and Exchange Board of India (SEBI) on Monday said in its order that Zee group promoters Subhash Chandra and Punit Goenka were actively involved in diverting company funds to the group’s related entities.
Sony and Zee decided to merge their television channels, film assets and streaming platforms in late 2021.
Reuters