Zee Entertainment shares plunge 12% as Sebi uncovers $241 million discrepancy

Zee shares plunge:  of Zee Entertainment Enterprises Ltd (ZEEL) plummeted by 12 per cent in mid-session trading on Wednesday following reports that the Securities and Exchange Board of India (Sebi) uncovered a financial discrepancy exceeding $241 million (approximately Rs 2,000 crore) in the company's accounts.

The stock of ZEEL nosedived 11.58 per cent to Rs 170.65 apiece on the BSE, while on the NSE, it plunged 11.39 per cent to Rs 170.70 per share, hitting its lower circuit limit.

The BSE Sensex benchmark rose 90.17 points, or 0.12 per cent, to 73,147.57, and the Nifty of the NSE rose 40.25 points to 22,237.20 during mid-session trade.

Reports indicate that during Sebi's probe into Zee's founders, the regulator discovered a diversion of approximately Rs 2,000 crore from the company. However, a ZEEL spokesperson refuted these claims, stating that reports related to accounting issues are "incorrect and false."

Sebi in talks 

Sebi has reportedly been in discussions with senior officials at Zee, including its founders Subhash Chandra and Punit Goenka, as well as some board members, to understand their perspective. The amount in question is not final and may change after Sebi reviews the responses from the company executives.

The downturn in ZEEL shares follows the collapse of its merger with Sony Group Corp's unit, with shares experiencing significant volatility amid reports of attempts to salvage the $10 billion merger with Sony Pictures Networks.

(with PTI inputs)