Sebi Deepens Investigation into ZEEL's Listing Violation Allegations

India's markets watchdog Sebi is intensifying its probe into alleged listing norm violations by ZEEL and its founder Subhash Chandra, issuing a fresh show cause notice. Previous attempts by ZEEL to settle the dispute were rejected, leading to continued scrutiny and potentially significant penalties.

The Securities and Exchange Board of India (Sebi) announced on Thursday its decision to issue a fresh show cause notice to Subhash Chandra, the founder chairman of Zee Entertainment Enterprises Ltd (ZEEL), along with his son Punit Goenka. This move comes as part of an ongoing investigation into alleged violations of listing norms by the media company.

According to an order by Sebi's adjudicating officer, the new notice will incorporate contents from an earlier notice issued in July 2022. Despite efforts by ZEEL and its executives to settle the matter through applications, a Sebi panel rejected their settlement, prompting continued scrutiny.

Sebi plans to further the investigation under Section 11B of the SEBI Act 1992, which grants the regulatory body the authority to impose penalties and issue notices. The agency's ongoing efforts underscore the seriousness of the alleged violations and could lead to significant implications for ZEEL.

(With inputs from agencies.)