Sebi chief declines to comment on Zee, says violations will attract action

Zee is witnessing a battle between its largest shareholder and the original promoters

Sebi Chairman Ajay Tyagi on Tuesday said that whatever actions are required will be taken if there are violations but declined to offer any specific comment to a query on events related to Zee Entertainment Enterprises.

Zee is witnessing a battle between its largest shareholder Invesco Developing Markets Fund and the original promoters. Invesco wants to remove Punit Goenka, Zee's long time chief executive and managing director, in an Extraordinary General Meeting (EGM).

On Tuesday, Tyagi said that Sebi will take action if it finds any violations but declined a case-specific comment.

"It (the question) is a case-specific one but if there are any violations of any Sebi regulations, definitely whatever actions are required that will be taken," Tyagi told reporters here.

Even before the EGM called by the investor could take place, Zee announced a merger deal with Sony Pictures Network India, wherein both companies have entered a non-binding term sheet that offers 90 days for Zee and SPNI to conduct due diligence and finalise the definitive agreements to combine their linear networks, digital assets, production operations and programme libraries.

Under the proposed transaction, both entities plan to list the merged entity and Goenka will continue as the managing director and chief executive officer of Zee.