New Delhi: In a significant development for ZEE Entertainment Enterprises (ZEE), the Independent Investigation Committee (IIC) has cleared the company of any material irregularities. Chaired by former Allahabad High Court judge Satish Chandra, the committee conducted a thorough review of all allegations raised by regulatory agencies, including SEBI.
The IIC, which also included ZEE’s independent directors Uttam Prakash Agarwal and P.V. Ramana Murthy, spent considerable time delving into the areas of concern highlighted by the regulatory authorities. They sought advice from external audit firms, taxation and regulatory experts to ensure a comprehensive review of all points.
In its report to the Board, the committee emphasized that ZEE has fully cooperated with regulatory authorities and provided comprehensive support and detailed responses to SEBI’s inquiries. The investigation revealed that the company has implemented necessary remedial measures regarding past issues already reviewed by SEBI and took appropriate and timely actions to address their concerns.
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Importantly, the committee determined that the transactions under investigation did not adversely impact ZEE or its shareholders and were deemed part of the normal course of business. It also reviewed ongoing matters under adjudication with SEBI and concluded that no additional action is required from the company, affirming its compliance and commitment to regulatory standards.
Commenting on the findings, Satish Chandra stated, “We have invested significant time and energy to conduct a detailed review of all the allegations and the necessary submissions have been made to the Board. The required records and information were sought from the Company, its management and promoters over the last few months, which were duly verified by the Committee along with a set of experts from the financial domain.
The efforts shown by the Committee members, along with the external advisors, enabled us to conduct a comprehensive evaluation of all the points. The Committee has noted the support extended by the management, which enabled it to complete the review in a timely manner. Based on our report, we have not found anything adverse or untoward in the Company’s operations and a detailed report has been submitted to the Board elaborating our findings.”
Following the submission of the report, the Board advised ZEE to proactively settle any pending adjudication proceedings with SEBI and focus on enhancing its performance and profitability across all aspects, in line with its strategic growth plan.
The IIC was instituted in February 2024 to investigate allegations leveled by regulatory authorities and protect the rights of ZEE’s shareholders and stakeholders. The clean bill of health from the independent investigation is a significant positive for the company and its investors.