Markets regulator Sebi or Securities and Exchange Board of India has allegedly summoned the chief executive officers of four mutual fund institutions and one credit ratings agency over the controversies regarding Zee Entertainment Enterprises.
As per the report by news agency IANS, CEOs of mutual fund houses Birla MF, ICICI MF, HDFC MF, Reliance MF and Brickworks have been summoned by Madhabi Puri Buch, consequent to the enforcement of securities by two lenders on Friday. Sebi has decided to dig deep into the matter and question the CEOs.
Zee Entertainment Enterprises shares have been keenly monitored over the last month. A new report stated that Zee’s promoter Essel Group may figure in a probe linked to demonetisation-led deposits of Rs. 3,000 crore, which has affected the stock price. In spite of denying any role in demonetisation-related transactions, that are being probed by Serious Fraud Investigation Office (SFIO), reports Reuters.
Shares in Zee was at 33.4 per cent on the BSE (Bombay Stock Exchange) on January 25 to but closed at 26.4 per cent lower for the day. This was reported their worst intra day fall since their 1995 debut. The stock has however been recovering slowly from that day. The stock’s Friday’s closing price, registered a 11.6 per cent recovery from the January 25 level. Subhash Chandra, chairman of Zee and Essel group said that as of January 28 the company has reached at an understanding with lenders to whom the shares held by the group’s promoters have been pledged.
On January 27th, Zee had reached an agreement with its lenders that they would not declare a default caused by the steep fall in its share prices the previous week, reported IANS. Essel has assured investors that business fundamentals of the media firm are intact and promoter stake sale and Essel Group’s stressed asset sale is on track.
IANS has reported that not even 10% of lenders have signed the alleged agreement. As per the enforcement of securities by two lenders, there have emergency meetings of lenders this past weekend to secure approvals, according to the agency.
