Z says SEBI order will not impact Rs 3,144-crore fund raise; seeks legal advice
Z has said that the company firmly believes that the order from SEBI has no direct bearing on the fund-raising exercise
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Published: Aug 3, 2026 8:55 AM | 2 min read
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- Zee Entertainment Enterprises Ltd. (ZEEL) is seeking legal advice following a final order from the Securities and Exchange Board of India (SEBI) regarding unauthorized pledging of its property for loans by promoter-linked entities.
- The company asserts that SEBI's actions will not impact its planned Rs 3,144-crore fund-raising exercise, which has received necessary regulatory approvals and shareholder support.
- SEBI's order includes a two-month ban on ZEEL's access to the securities market and a one-year prohibition on founder-chairman emeritus Subhash Chandra and Managing Director & CEO Punit Goenka from trading in securities.
- ZEEL plans to take necessary legal measures to address the allegations and protect stakeholder interests, emphasizing its commitment to strengthening its financial foundation.
Zee Entertainment Enterprises Ltd. (ZEEL) on Sunday said it is seeking legal advice after receiving the Securities and Exchange Board of India's (SEBI) final order, while asserting that the regulator's action will have no direct bearing on its proposed Rs 3,144-crore fund-raising exercise.
Read earlier report on Z shareholders approving fund raising
In an official statement, a company spokesperson said “The company is in receipt of the order issued by the Securities and Exchange Board of India (SEBI) and is seeking advice from legal experts on the same.”
The statement also said, “The company firmly believes that the order from SEBI has no direct bearing on the fund-raising exercise.”
“The company would like to clarify that pursuant to the regulatory approvals received from the stock exchanges and from its esteemed shareholders at the Extraordinary General Meeting conducted on 31st July 2026, it will further take all required steps to successfully complete the fund-raising exercise, which is aimed at strengthening its financial foundation, and will also continue to work towards creating value for its stakeholders,” it added.
The company also said it would take ‘required measures in accordance with the law’ in response to the allegations against the company and its promoters to protect the interests of stakeholders.
The statement comes days after SEBI passed a final order in a case relating to the unauthorised pledge of ZEEL's immovable property in Hyderabad for loans availed by promoter-linked Essel Group entities.
The market regulator barred ZEEL from accessing the securities market for two months, prohibited founder-chairman emeritus Subhash Chandra and Managing Director & CEO Punit Goenka from dealing in securities for one year, and imposed monetary penalties on the company and the two executives.
SEBI held that the company's property had been used as collateral without the knowledge or approval of its board, audit committee or shareholders, and that the arrangement had not been adequately disclosed.
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