SEBI bars Zee fundraising 2 months after Hyderabad loan probe
Zee Entertainment's big fundraising move just got paused. India's market regulator, SEBI, has blocked Zee from raising money in the securities market for two months.
Plus, Managing Director and CEO Punit Goenka and promoter Subhash Chandra can't trade or deal in securities for a year.
This all started after an investigation found Zee had used its Hyderabad property to secure loans without getting the right approvals.
Zee's over ₹3,100cr promoter-group warrants blocked
Zee wanted to raise over ₹3,100 crore by issuing new warrants to its promoter group, a step that would have boosted their stake in the company.
But thanks to SEBI's order, those plans are on ice unless Zee can successfully challenge the decision in the Securities Appellate Tribunal.
Legal experts say it's a waiting game now: no moving forward until there's a ruling on their appeal.