In trading on Friday, shares of ZEE Entertainment Enterprises Ltd., also known as ZEEL, fell by seven percent due to concerns that the proposed merger of the media company with Sony Pictures Networks India (SPN) could face a new setback.
The capital market regulator Sebi asked stock exchanges to submit an order from April 25 as part of the record, and NSE and BSE told the National Company Law Tribunal (NCLT).
According to several sources, stock exchanges have supposedly informed the National Corporate Law Tribunal (NCLT) that the promoters of the Essel Group’s Shirpur Gold Refinery have allegedly transferred corporate assets to benefit themselves.
The stock has seen a loss of 24.68 percent so far this year.
According to a story in the ET, the notification was issued as a result of orders from the Sebi, which had issued a show cause notice and an interim order against the refiner as well as highlighted breaches of other regulatory provisions.
As a result of the event, the share price of ZEE Entertainment dropped by 6.56 percent, reaching a new low of Rs 179.35 on the BSE.
According to what the exchanges are believed to have told the company law tribunal on Thursday, they may be obliged to rethink their approvals to the Sony-Zee merger as a result of an instruction issued by the Sebi in light of its ruling against a business affiliated with the Essel Group.
In April, Sebi issued an interim order against Shirpur Gold Refinery, the business’s former chairman Amit Goenka, the promoter Jayneer Infrapower and Multiventures, and five other individuals for allegedly siphoning off cash from the company and breaking other regulations. The ruling also named Shirpur Gold Refinery.