GECs
Z shareholders back new board appointments
MUMBAI: Zee Entertainment Enterprises Ltd. (Z) today announced that its shareholders have decisively approved the appointments of advertising professional Divya Karani as an independent director and Saurav Adhikari as a non-executive director to the company’s board. The endorsement, secured through a remote e-voting postal ballot that concluded today, reflects strong shareholder confidence in the board’s ability to drive value creation and foster robust growth.
The company’s strategic vision includes enhancing board guidance and strengthening its governance framework. The inclusion of highly experienced individuals from diverse sectors is central to this approach, a company press release states. Karani and adhikari are expected to provide comprehensive guidance to the management team, ensuring effective execution of the strategic growth plan.
Karani brings over three decades of experience in the advertising and media sectors, notably as the chief executive of dentsu media, south Asia. Her insights are anticipated to be invaluable for advertising revenue. Adhikari, with more than 30 years of expertise in global technology, fast-moving consumer goods, and consumer durables, will contribute significantly from an operations and investment perspective. He is the founder and senior partner at Indus Tech Edge Fund I.
Z chairman R. Gopalan expressed gratitude to shareholders, highlighting the “sharp business acumen” and “creative expertise” that the two directors will bring to the board. He reiterated that they will only strengthen “the board’s directional guidance to the management team as the company progresses towards the targeted aspirations. We remain committed towards fortifying Z and maximizing shareholder value, through all our decisions.”
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.
