SEBI Rejects Zee and Punit Goenka’s Settlement Applications

The Securities and Exchange Board of India (SEBI) has rejected the settlement applications filed by Zee Entertainment Enterprises (ZEEL) and Punit Goenka, sending the case for further investigation. The regulatory authority integrated allegations from earlier show-cause notices into an ongoing probe, opting for a deeper examination rather than resolution through settlement.

This decision stems from adjudication proceedings involving Subhash Chandra, former Chairman and Director of Zee, and his son, Punit Goenka, who serves as the company’s Executive Director, CEO, and Managing Director. These proceedings are being conducted under Section 23E of the Securities Contracts (Regulation) Act, 1956.

Initially, SEBI appointed Parag Basu as the Adjudicating Officer (AO) in 2021. However, in December 2024, the case was reassigned to AO Amit Kapoor, indicating a renewed focus on the matter. Despite their settlement plea, Zee and Goenka could not sway the panel of Whole Time Members, which chose to escalate the case.

SEBI clarified that the investigation’s Competent Authority has decided to proceed under Section 11B of the SEBI Act, 1992. This section grants the regulator the power to issue directives and take actions deemed necessary to protect investors and ensure compliance.

The rejection of the settlement plea highlights SEBI’s determination to thoroughly investigate regulatory violations attributed to ZEEL and its leadership. This move underscores the regulator’s commitment to enforcing accountability and maintaining transparency in the financial sector.

As the investigation unfolds, this case serves as a reminder of SEBI’s firm stance on addressing compliance issues and safeguarding market integrity.