The Securities Appellate Tribunal allows Zee and its CEO Punit Goenka to proceed with a ₹3,100 crore warrant issue, marking a temporary respite amid a wider market ban and regulatory scrutiny that continues to impact investor sentiment.
The Securities Appellate Tribunal has given Zee Entertainment Enterprises and its chief executive, Punit Goenka, limited breathing space by allowing them to complete a proposed ₹3,100 crore warrant issue, even as the wider market ban imposed by the Securities and Exchange Board of India remains in force. According to the tribunal’s interim order, the relief is confined to the fund-raising exercise and does not amount to broader exoneration in the dispute with the regulator.
SAT also asked Zee and Goenka to deposit the full penalty amount within a week, with SEBI required to hold the money in an interest-bearing account. The tribunal extended the deadline for issuing the warrants by a further week from August 14, after Zee said the earlier cut-off was due to expire that day. Zee told the bench that 76.64% of its public shareholders had already approved the preferential warrant issue at an extraordinary general meeting, with the company seeking to raise around ₹3,100 crore.
The case stems from allegations that Zee’s Hyderabad property was mortgaged in 2016 to secure borrowings by four group companies without the approval of the board or shareholders. SEBI opposed any interim relief, arguing that the arrangement ran against shareholder interests, while SAT said the remaining arguments would be dealt with at the final hearing. The tribunal also said Zee may continue to use mutual fund transactions for ordinary business needs, but not for purposes such as paying a proposed dividend.
The dispute comes at a time when Zee is already under intense regulatory and investor scrutiny. A recent report by The Economic Times said two proxy advisory firms took opposing positions on the warrant proposal before the EGM, reflecting the governance concerns surrounding the deal. Separately, reports from Angel One and Moneycontrol have said SEBI’s broader probe into alleged fund diversion, including a second show-cause notice issued in February 2026, has prolonged the company’s promoter overhang and weighed on investor sentiment.
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