GECs
UTV gets nod for more foreign equity
MUMBAI: The Foreign Investment Promotion Board (FIPB) has given the green signal to United Television (UTV) , to increase its foreign equity in the company from 66.43 per cent to 68.15 per cent.
According to a report in The Financial Express , Century Direct Fund is purchasing 1.72 per cent stake in UTV Software Communications at Rs 12.5 million, thus increasing its total holding in the company to 2.5 per cent. .
The holding of the promoters after the acquisition of Western Outdoor and Century Direct Fund’s hike in stake will be around 35 per cent. Also CDPQ of Canada holds 33 per cent and Rupert -Murdoch -promoted News Corp 15 per cent stake in UTV, adds the report.
In a bid to expand its post production business , UTV had bought Western Outdoor in an all- stock deal , giving it a less than one per cent stake in exchange.
UTV’s future business plans include co-producing a $8 million budget movie called Partition with a Canadian producer, a Rs 200 million budget Hindi movie with Shahrukh Khan and another big budget Hindi movie, the report adds.
GECs
Sebi sends show-cause notice to Zee over fund diversion, company responds
Regulator questions 2018 letter of comfort and governance lapses; company vows robust legal response
MUMBAI: India’s markets watchdog has reignited its long-running scrutiny of Zee Entertainment Enterprises, issuing a sweeping show-cause notice that drags the broadcaster and 84 others into a widening governance storm.
The notice, dated February 12, has been served by the Securities and Exchange Board of India to Zee, chairman emeritus Subhash Chandra and managing director and chief executive Punit Goenka, among others. At its heart: allegations that company funds were indirectly routed to settle liabilities of entities linked to the Essel Group.
The regulator’s probe traces its roots to November 2019, when two independent directors resigned from Zee’s board, flagging concerns over the alleged appropriation of fixed deposits by Yes Bank. The deposits were reportedly adjusted against loans extended to Essel Group entities, triggering questions about related-party dealings and board oversight.
A key flashpoint is a letter of comfort dated September 4, 2018, issued by Subhash Chandra in his dual capacity as chairman of Zee and the Essel Group. The document, linked to credit facilities availed by certain group companies from Yes Bank, was allegedly known only to select members of management and not disclosed to the full board—an omission SEBI believes raises red flags over transparency and governance controls.
Zee has pushed back hard. In a statement, the company said it “strongly refutes” the allegations against it and its board members and will file a detailed response. It expressed confidence that SEBI would conduct a fair review and signalled readiness to pursue all legal remedies to protect shareholder interests.
The notice marks the latest twist in a saga that has shadowed the broadcaster since 2019. What began as boardroom unease has morphed into a full-blown regulatory confrontation. The final reckoning now rests with SEBI—but the reputational stakes for Zee, and the message for India Inc on governance discipline, could scarcely be higher.
