Zee Asks Sebi To Take Cognisance Of Misinformation Leading To Investor Wealth Erosion

ZEE Entertainment Enterprises (ZEEL) is cautioning against the misinformation and “market rumours” that it believes have led to investor wealth erosion. Last week, it was reported that the Ministry of Corporate Affairs had sought details from the Securities and Exchange Board of India (Sebi) on its latest findings of 'fund diversion' at ZEEL. Reports also claimed corporate governance lapses in the company and higher authority probes.  

Calling the reports as incorrect and false, ZEEL also said that they indicate "vested interests”.

In a press statement, the company spokesperson said, “The reports pertaining to possible corporate governance lapses in the company and subsequent probes by relevant departments, are incorrect and false. The reports also indicate the vested interests of a third party.”

The statement reiterates that ZEEL has maintained “utmost standards of governance and is a company that is guided by an experienced board.”

“The company has consistently extended complete cooperation to all concerned authorities and has transparently provided all information requested. The company and its board are taking all the required measures to protect the interests of its shareholders. The recently formed Independent Advisory Committee, comprising two independent directors, presided over by Dr. Satish Chandra, Former Judge of the Allahabad High Court, is a step taken to review such widespread circulation of misinformation, market rumours and speculation,” the statement said.

In the statement, ZEEL has also requested Sebi to take cognisance of such market rumours that lead to misinformation and consequently erosion of investor wealth.

ZEEL's Independent Advisory Committee is tasked with reviewing and addressing the prevalent dissemination of misinformation, market rumors and speculation that have resulted in the formation of adverse public sentiment surrounding the company leading to the erosion of investor wealth.

Satish Chandra, former Judge of the High Court of Allahabad will serve as the Chair of the Committee. Additionally, the committee will include two Independent Directors of the company namely Uttam Prakash Agarwal and P. V. R. Murthy.

The Committee will autonomously offer recommendations regarding the measures and future steps essential for the Board to safeguard the interests of all company stakeholders. Periodically, the Board will seek the expertise and guidance of the Committee on these matters.