The proposed merger was odd, to say the least, with its majority owner not assuming executive control. An ‘agency problem’ risk of leadership and ownership interests going out of whack was averted. Don’t tune out, there’s more action to come.
The proposed merger came apart on Monday, but perhaps they both saved themselves future trouble. Eyes will turn to Reliance’s pact with Disney-Hotstar, a union that’ll have a lion’s share of India’s TV ad pie.
Securities and Exchange Board of India (SEBI) may have zeroed in on the role of Zee Entertainment Enterprises Ltd (ZEEL) s managing director and chief executive officer (MD&CEO) Punit Goenka in misuse of funds as key managerial personnel (KMP) in Essel group companies, and the investigation by the market regulator reveal Rs800 crore to Rs1,000 crore may have been siphoned as against its previous finding of Rs200 crore, says a report.
BSE's Sensex tanked 1,053.10 points, or 1.47 per cent, to settle at 70,370.55, while NSE's Nifty50 nosedived 333 points, or 1.54 per cent, to end the day at 21,238.80 for the day.