The Securities & Exchange Board of India (Sebi) argued its action was not based on any prejudice towards Chandra and Goenka, but a necessary step against the promoters of Zee Entertainment Enterprises Ltd to protect investors and other stakeholders.
According to Sebi, Chandra and Goenka 'alienated the assets of Zee' and other listed companies of Essel group for benefit of associate entities, which are owned and controlled by them
At a hearing on the merger before the NCLT for its approval, counsel for both BSE and NSE reportedly informed the tribunal that they have been asked by the Sebi to submit its April 25 order on Shirpur before the court
A Sebi interim order could pose a hurdle in the merger talks between Zee and Sony as one of the Essel group companies is under the scanner for alleged diversion of funds.
SEBI has instructed BSE and NSE to inform the NCLT of a recent order against Essel Group s Shirpur Gold Refinery. The NCLT is currently hearing the Zee-Sony merger case, which has been facing legal hurdles from various creditors seeking repayment from Zee s promoters