SEBI bars Punit Goenka, Subash Chandra from holding directorial, key managerial positions

The Securities And Exchange Board Of India (SEBI) has barred Zee Entertainment Enterprises Limited‘s #SubhashChandra and #PunitGoenka from holding any managerial or directorial positions in any listed company for allegedly abusing their positions in the company and siphoning off funds for their benefit.

The interim order by the capital markets regulator comes on the back of an investigation into allegations related to the appropriation of certain fixed deposits of Zee Entertainment Enterprises Ltd (ZEEL) by YES BANK for squaring off loans of related entities of Essel Group.

According to the SEBI probe, Chandra, the then chairman of ZEEL/Essel Group, had provided a ‘Letter of Comfort’ (LoC) towards credit facilities availed by certain group companies from Yes Bank. More importantly, the LoC was known only to a few persons in the management and even the board of ZEEL was not aware of the letter, stated the SEBI order.