SAT to hear Sebi's appeal for modification in Zee order on July 27

The Securities Appellate Tribunal (SAT) will hear an appeal filed by the Securities and Exchange Board of India (Sebi) on Thursday for modification of the directions in the July-10 order in the alleged fund diversion case at Zee Entertainment Enterprises by promoters Punit Goenka and Subhash Chandra.

While dismissing the appeals by Zee promoters seeking relief, the tribunal had directed the markets regulator to give them an opportunity of hearing and appoint a different whole-time-member (WTM) for the investigation in the matter to remove any kind of bias.

Sebi, in its appeal, has asked for the modification on the direction for appointing a different WTM. The appeal comes amidst the vacancies at the WTM-level in the regulatory body. Since the issue of ex-parte interim order in Zee case, one of the four WTMs has retired while another is due for retirement by the end of July.

Of the two WTMs, Ashwani Bhatia was the one who passed the interim order against Zee promoters and had issued the order in the Essel-Group firm Shirpur Gold in April.

The only WTM left for the matter, Ananth Narayan, was a part of the committee which approved a settlement order in April related to a Sebi show-cause notice to the company in a matter related to insider trading and non-disclosure of price-sensitive information.

Sebi has sought the appointment of Narayan or allow any other authorised person to pass an order.