Zee constitutes advisory committee to combat negative sentiment

Zee has constituted an independent advisory committee amid the negative sentiment related to the company, stemming from SEBI’s investigation on the top management and the fallout of the Zee-Sony merger.

Sony last month terminated the $10 billion merger with Zee, which would have made the entity the largest media conglomerate. 

“We hereby inform you that while taking cognisance of widespread circulation of misinformation, market rumours, and speculation that has led to formation of negative public opinion about the Company and consequent erosion of investor wealth, the Board of Directors of the Company has constituted an Independent Advisory Committee,” Zee said in an exchange filing.

Headed by Dr. Satish Chandra, Retired Judge of the High Court of Allahabad will be heading the committee as chairperson, along with two independent directors of the company - Uttam Agarwal and P V Ramana Murthy as board members.

It was earlier reported that the Securities and Exchange Board of India (SEBI) will question the top management of Zee, according to two people in the know cited in the report. 

As per Sebi's initial findings in June 2023, Zee diverted Rs 200 crore from the company through related party transactions. 

Promoters and father-son Subhash Chandra and Puneet Goenka contested SEBI’s investigation before the Securities Appellate Tribunal (SAT). The regulatory body said it was conducting a wider investigation into the matter since the transactions had several layers. Chandra had issued a letter of comfort for Rs 4,210 crore as chairman of Essel Group, SEBI infomed the Tribunal.

Zee shares traded 3 per cent higher at Rs 173.3 on February 23 on the BSE. 

Dr. Chandra is a fellowship awardee of the Hague Academy of International Law, and has been a Visiting Professor in the Institute of State and Law, Mascow. 

He has also been a Constitutional Advisor to the Government of Zanzibar as well as served a Judge in the High Court of Zanzibar.