Updated February 28th, 2024 at 14:21 IST

Zee Entertainment drops over 5% as investors remain skeptical of probe panel move

The media company revealed that an "Independent Investigation Committee" would spearhead the probe, chaired by Justice (retired) Satish Chandra.

Reported by: Business Desk
Zee Entertainment Enterprises | Image:Republic
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Zee Entertainment share price: Zee Entertainment Enterprises witnessed a significant dip in its share prices by more than 5 per cent on February 28, following the company's announcement of forming a panel to investigate allegations against its promoters and key managerial personnel by regulatory bodies.

The media company revealed that an "Independent Investigation Committee" would spearhead the probe, chaired by Justice (retired) Satish Chandra. In a statement, Zee emphasised the committee's role in ensuring a thorough examination of the allegations to safeguard the interests of shareholders and stakeholders.

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Despite Zee's stance, investors appeared unconvinced by the development. By 2:05 pm, the company's shares were trading at Rs 163.05 on the NSE, marking a 5.77 per cent decline from the previous day's close. This downtrend reflects a broader trend for Zee, which has witnessed a 41 per cent decline in its stock value this year, against the benchmark Nifty 50 index which gained over 1 per cent during the period.

The investigation panel, comprising independent directors Uttam Prakash Agarwal and PVR Murthy, is tasked with delivering a comprehensive report to the company's board, guiding its subsequent actions. R Gopalan, Chairman of Zee, said that the board is committed to implementing necessary measures after the committee's report, following consultations with Justice Chandra.

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This move comes amidst an ongoing investigation by the market regulator SEBI into allegations of fund diversion against Zee's promoters. Managing Director Punit Goenka, son of Zee's founder Subhash Chandra, remains under SEBI scrutiny for alleged involvement in misappropriating company funds.

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Published February 28th, 2024 at 14:21 IST