Zee Entertainment shares fell more than 2% in the morning session of September 28 after the SEBI confirmed a ban on five people in the Zee Entertainment insider trading case.
SEBI reported on September 27 that five people have been disqualified from the securities market for engaging in insider trading in Zee Entertainment Enterprises’ stock.
“Bijal Shah, Gopal Ritolia, Jatin Chawla, Gomti Devi Ritolia and Daljit Chawla are restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders,” SEBI said in its 43-page confirmatory order. However, they have been allowed to buy and sell units of mutual funds.
After allowing additional entities who are not covered by the interim order but against whom the interim order has been imposed an opportunity to be heard, SEBI will issue a second order.
After surging over 84% in the last month, the stock has gotten a lot of attention. Invesco, the company’s largest shareholder, persevered in convening an extraordinary general meeting (EGM) to demand a new board of directors and the dismissal of MD and CEO Punit Goenka.
Invesco, on the other hand, did not reject Sony’s sale negotiations, stating in the letter that Zee Entertainment Enterprises’ company was valuable, “whether on its own or in strategic alignment with partners such as Sony”.
“A newly constituted board supported with the strength of independence will be best suited to evaluate and oversee the potential for strategic transactions, like the one announced on 22 September 2021 on a non-binding basis, as well as to make determinations on the future leadership of the Company,” it said.
Zee Entertainment shares were down Rs 7.20, or 2.23%, at Rs 315.15. It has traded between a high of Rs 323.00 and a low of Rs 312.45 during the day session.
