(Reuters) – The Securities and Exchange Board of India (SEBI) on Monday barred Zee Entertainment’s Subhash Chandra and Punit Goenka from the boardrooms of listed companies for a year, according to an order published on the regulator’s website.
The SEBI said in its order that Chandra, former chairman of Zee, and Goenka, managing director and CEO of Zee, were actively involved in diverting company funds to the group’s other listed entities and firms related to founding shareholders.
They were also direct beneficiaries of the fund diversion, the regulator said.
The case involved Chandra’s letter of comfort on behalf of related entities to get loans from Yes Bank.
The entities later defaulted on their loan obligations, prompting Yes Bank to take possession of Zee’s fixed deposits in lieu of its dues.
Although Chandra’s firms settled their loans, the SEBI said disclosures about the repayment were false and misleading.
A Zee spokesperson could not be immediately reached for comment.
(Reporting by Jayshree P Upadhyay; Editing by Anil D’Silva)
