Zee Share Price Plummets: Sebi Report Reveals ₹2,000 Crore Accounting Irregularity.
Zee Entertainment Enterprises Ltd (ZEEL) faces a significant setback as the capital market regulator, Securities and Exchange Board of India (SEBI), reveals a substantial financial irregularity exceeding $240 million or approximately ₹2,000 crore in the company’s accounts, according to a recent report.
Zee shares experienced a dramatic start to Wednesday’s trading session as they were locked at a 10% lower circuit, following reports of Securities and Exchange Board of India (SEBI) uncovering irregularities amounting to ₹2,000 crore in the company’s accounts.
Zee Entertainment Enterprises Ltd (ZEEL) faces a significant setback as capital market regulator Securities and Exchange Board of India (SEBI) uncovers a financial discrepancy surpassing $240 million or approximately ₹2,000 crore in the company’s accounts, as reported by Bloomberg News.
SEBI’s Probe Reveals Potential Diversion of ₹2,000 Crore ($241 Million) from Zee Founders, Marking Tenfold Increase from Initial Estimates.
In addition, the regulator has summoned Zee founders Subhash Chandra and his son Punit Goenka, along with select board members of the troubled media firm, to provide explanations, as reported by Bloomberg.Furthermore, Zee shares have experienced a significant downturn following the collapse of its merger with Sony Group Corp’s India unit. Year-to-date, the stock has plummeted by 30%.In a separate development, Zee Entertainment issued a clarification on Tuesday refuting reports of reinitiating discussions with the Sony group to revive their $10 billion merger deal, which was terminated on January 22.
In a regulatory filing, Zee Entertainment stated that the company was not engaged in any negotiations regarding the Sony merger deal, and refuted reports indicating a revival of discussions as ‘factually incorrect’.
Zee shares had surged nearly 8% on Tuesday following reports of representatives from both parties working to salvage the deal, with efforts to revive the merger gaining momentum over the past two weeks.However, as of 9:17 am, Zee Entertainment shares were at a 10% lower circuit, trading at ₹173.70 apiece on the BSE.