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Amid market rumours and media reports about its accounting and financial issues, among others, Zee Entertainment has set up an advisory committee to guide its board on how to tackle such issues. Embattled Paytm too has set up an advisory panel recently.
Zee’s committee will be headed by retired Allahabad HC judge Satish Chandra and two independent directors, Uttam Agarwal and P V Ramana Murthy.
Zee noted that there has been a “widespread circulation of misinformation, market rumour and speculation leading to the formation of negative public opinion about the company” and as a result, impacts its share price and “erodes investor wealth”. Although the company’s share rose 3% to close at Rs 173 on the BSE, it has crashed 36% in the last six months and has lost 25% of its value since Sony called off a merger with Zee in late Jan.
Recently, Zee denied a report on its accounting issues, stating that the article was baseless and false. The report said that India’s market regulator has found $240 million diverted out of Zee’s books.
“The reports pertaining to possible corporate governance lapses in the Company and subsequent probes by relevant departments, are incorrect and false. The reports also indicate vested interests of a third party. ZEE has maintained utmost standards of governance; and is a Company that is guided by an experienced Board. The Company has consistently extended complete co-operation to all concerned authorities and has transparently provided all information requested. The Company and its Board are taking all the required measures to protect the interest of its shareholders,” said a company spokesperson.
The spokesperson added, “The recently formed Independent Advisory Committee, comprising of 2 Independent Directors, and presided by Dr. Satish Chandra, Former Judge of the Allahabad High Court; is a step taken to review such widespread circulation of misinformation, market rumours and speculation. The Company has also requested SEBI to take cognizance of such market rumours that lead to misinformation and consequently erosion of investor wealth.”
In a filing, Zee said the company had disclosed in its Q3 FY23 results and following the Oct 30, 2023 SAT order, it has been in the process of providing all information requested by Sebi and “hence wasn’t aware of any order by the regulator recording such a finding”.
(With inputs by BE Staff)
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