Sunday, Zed Entertainment Enterprises announced that it is consulting with legal professionals to analyse the final judgement from the Securities and Exchange Board of India (Sebi). The company firmly believes that the regulator’s move will have no impact on its intended Rs 3,144-crore fund-raising operation.According to a corporate representative, they have received the order from the Securities and Exchange Board of India (SEBI) and are currently consulting with legal professionals on it.
In a statement that reiterated its stance on the capital raise, the company stated, “The company firmly believes that the order from SEBI has no direct bearing on the fund-raising exercise.”
Zed further stated that it will go on with the required actions to finish the fund raise after receiving regulatory clearances from stock exchanges and shareholders at its Extraordinary General Meeting (EGM) that was held on July 31.The company’s spokesperson wanted to clarify that, after receiving regulatory approvals from the stock exchanges and its shareholders at the Extraordinary General Meeting on July 31, 2026, it will take all necessary steps to finish the fund-raising exercise. The exercise is to strengthen the company’s financial foundation and create value for stakeholders.
Responding to the accusations against the firm and its promoters, the corporation said it would take “necessary steps in compliance with the law” to protect stakeholders’ interests.
A few days ago, Essel Group businesses associated to promoters took out loans using Zee’s Hyderabad property as collateral, which led to an unauthorised mortgage. Sebi recently issued a final ruling in a case involving this practice.
Zed was sanctioned by the regulator with a two-month suspension from the securities market, along with founder-chairman emeritus Subhash Chandra and Managing Director & CEO Punit Goenka, who were each sanctioned with a one-year suspension and fined monetarily.
Due to inadequate disclosure and the lack of permission from the company’s board of directors, audit committee, or shareholders, Sebi ruled that the company’s Hyderabad property had been pledged as collateral.
Image: ET
