Zee row: SAT defers hearing on SEBI's confirmatory order to Sept 13

The Securities Appellate Tribunal (SAT) on Friday postponed to September 13 the final hearing on a plea challenging a SEBI's confirmatory order that barred Zee Entertainment Enterprises' Punit Goenka and Subhash Chandra from holding any key positions in the company and other organisations.

After hearing rejoinders from counsels Abhishek Manu Singhvi and Navroz Seervai, representing Goenka and Chandra, SAT said it will continue the hearing on September 13.

SAT further stated that on September 14, it will hear Goenka and Chandra's rejoinders.

In his rejoinder, Singhvi said that SEBI passed the confirmatory order without concluding the investigation and is based on mere speculation.

The market regulator had no evidence beyond the bank statements to prove the allegations of round-tripping of funds, he added.

SEBI's confirmatory order bars Goenka and Chandra from holding any directorship or other key managerial positions in the company and other organisations.

Singhvi also said the Sebi's order is against public interest considering a merger with Sony, which has been approved by the National Company Law Tribunal (NCLT).

Senior advocate Darius Khambata appeared for Sebi.

Goenka has moved SAT challenging Sebi's confirmatory order that was passed on August 14, whereby the regulator restrained the duo from holding the post of director or KMP in at least four Zee group companies as well as in the merged entity of ZEEL and Sony Pictures Networks India, until further directions.

Passing the confirmatory order in connection with the case of alleged siphoning off funds of ZEEL, Sebi Chairperson Madhabi Puri Buch said the investigation by the watchdog in the case "shall be completed in a time-bound manner and in any event, within a period of eight months from the date of this order".

The National Company Law Tribunal (NCLT) on August 10 gave its approval to the merger of Zee Entertainment Enterprises and Culver Max Entertainment (earlier known as Sony Pictures Networks India) creating a USD 10 billion media house, the biggest in the country.