21-Feb-2024
2 mins read
Zee stock price fell 14% on Wednesday, February 21, 2024, trading session after SEBI found a financial discrepancy of $240 million (Rs 2000 crore) in the books of Zee Entertainment Enterprises. This news had negatively impacted the investors sentiment and shares of Zee witnessed a sharp fall in the regular trading session.
At the time of investigation in Zee Entertainment, SEBI had disclosed that the amount of Rs 2000 crore approx ($240 million) might have been redirected from the company. The current amount reported is 10 times more than SEBI investigators initially estimated.
SEBI Asked for Explanation
The market regulator SEBI called senior officials of Zee company including founders Subhash Chandra and his son Punit Goenka and other board members to give explanation about this issue.
Zee’s spokesperson declined to give any comment on this fund diversion issue and replied to Bloogberg by mail, that the company is cooperating with SEBI in the ongoing issue.
The recent finding by SEBI has raised concerns for Zee’s CEO Punit Goenka. He is trying to bring back the investors’ confidence after the termination of the $10 Billion merger plan with Sony. The two year long partnership was halted in January 2024, which also negatively impacted investors sentiment and Zee shares.
What Happened Last Year?
Since mid- 2023, the regulatory investigation found financial improprieties in Zee Entertainment has sparked the conflict between Sony and Zee.
SEBI in August 2023, had prohibited Zee founders Subhash Chandra and Punit Goenka from holding executive and director positions in any listed firm. Zee appealed this order, securing a partial reprieve in October, allowing Punit Goenka holding an executive position during the ongoing issue.
Now, the recent news regarding fund diversion has invited a sharp downfall in Zee shares. Today, Zee shares close the trading session at Rs 164.60 with an intraday decline of 14.56%.