GECs
Zee streamlines corporate structure
MUMBAI: Zee Telefilms has restructured its overseas subsidiary companies in 2004-05 to streamline and simplify operations.
Asia Today Ltd (ATL) has acquired 100 per cent stake in Pan Asia Infrastructure Ltd (PAIL), a company incorporated in Mauritius. The company has leased land from Dubai Media City to build office space and a studio. This is in line with Zee’s expansion plans in the Middle East.
In Dubai, Zee has formed a subsidiary, Zee Telefilms Middle East F.Z.L.L.C. This company, formed to handle broadcasting operations for the Middle East from the Dubai Media City, has an issued share capital fully held by ATL. Incidentally, Zee plans to launch a music and lifestyle channel, Zee Arabia, targeted at South Asians in the Middle East.
ATL, in fact, has become the hub for Zee’s international operations. As part of this exercise, Expand Fast Holdings Ltd, BVI was merged with ATL during the year.
ATL has also entered into a joint venture with Resource Software Ltd to seek programme procurement and packaging expertise for Zee’s English movie channels. ATL holds a 60 per cent in the joint venture company, Asia Business Broadcasting Mauritius Ltd. The need for a JV followed the buy out of MGM by Sony. ATL was hosting the English movie channel Zee MGM.
Zee Interactive Learning Systems Ltd (ZILS), a wholly owned subsidiary which is primarily engaged in the business of technology led learning, is being capitalised. ZILS has proposed to issue of 10,00,000 equity shares of Rs 10 each at a premium of Rs 20 to the company by converting/capitalising outstanding advances against subscription money payable on the issue. ZLS has also issued and allotted 9,50,000 equity shares of Rs 10 each to Ganjam Trading Co. Pvt. Ltd (one of the promoters of Zee Telefilms) at a premium of Rs 20 per share. This aggregates to Rs 28.5 million against the loans and advances provided by Ganjam. ZILS has, thus, ceased to be the wholly owned subsidiary of the company, though the control and management will remain with Zee Telefilms.
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.
