GECs
Sushma Swaraj opens for business
Sushma Swaraj does not cease to surprise you. The first statement she made after taking over as I&B minister was that she wanted TV to be programmed for the family, and vulgarity in programmes should be curbed. She reiterated this at the launch of Zed TV in Mumbai a fortnight later.
Yesterday speaking at the Economic Editors’ Conference in New Delhi, she let loose a cannon. She told the scribes that the government was relooking foreign investment in print media – something which has been a sacred cow for every government in power – not to be touched, not to be relooked at since a cabinet decision was taken in 1955 to close the doors on foreign investment in publishing. Even her predecessor Arun Jaitley who is seen as more of a liberal had said the sacred cow will not be touched
“The scenario has changed with the arrival of the Internet,” she told the hacks. “That is why we are reconsidering it.”
She additionally told the journos that the group of ministers of DTH had almost finished their deliberations and a draft was ready. A decision of opening it up would be taken up in the next 10-15 days. Whether these are just empty promises or not only time will tell. Previous I&B ministers have made similar proclaimations only not to meet their commitments because of the various pulls and pressures.
She added that while a common regulator is needed for the information technology, communications and information and broadcasting ministries, there is no need to merge the three ministries into one. This would mean that she is headed for a clash with the Fali Nariman commmittee recommendation which is believed to have recommended that the three ministries be merged.
Another major development yesterday was the announcement that the entertainment sector (including films) had been notified as an industry, thus making it eligible to get loans from financial institutions.
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.
