Zee Entertainment shares gain after SAT says the Zee-Sony merger is a public interest issue

The Securities Appellate Tribunal (SAT) on August 30 refused interim relief to former Zee chief Punit Goenka, who has been barred by the Securities and Exchange Board of India's (SEBI) from holding key positions within four Zee group firms and in the merged entity of ZEEL and Sony Pictures Networks India.

SAT, however, noted that it is not satisfied with eight months time that the markets regulator has taken for investigation. ZEEL shares rallied more than a percent to Rs 267.95 at 12:21 pm following the development.

Goenka’s counsel argued that the former Zee promoter’s appointment as MD in Zee-Sony merged entity is not detrimental to public shareholders and that SEBI is keeping Goenka out of office for a very long time. SEBI order against Goenka is disproportionate, his counsel said and sought interim protection against it as it is premature.