GECs
ZeeL debt credit rating revised
NEW DELHI: Even as Zee Entertainment Enterprises Ltd (ZeeL) CEO Punit Goenka's 4.0 vision measures are beginning to bear fruit and are resulting in a better performance for the company, credit rating agency Brickwork Ratings India has downgraded its rating and that of its debt, namely the six per cent cumulative redeemable non-convertible preference shares. These debt instruments are worth Rs 806.78 crore.
ZeeL informed the Bombay stock exchange about Brickwork's downgrade yesterday.
The previous rating for the six per cent cumulative redeemable non-convertible preference shares instrument was BWR AA- (credit watch with negative implications) while the new rating is BWR A (credit watch with negative implications).
The previous issuer rating was BWR AA- (credit watch with negative implications) while the new rating is BWR A (credit watch with negative implications).
Brickwork said it has done this factoring in heightened uncertainties on contingent liabilities/claims against ZeeL causing increase in credit risk and rating concern.
ZeeL is one of India's largest and oldest media conglomerates with a presence in linear, OTT and digital mediums. The media house is present in multiple genres such as news, films, production, GEC and others.
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.
