SAT Allows Zee’s ₹3,100 Crore Warrant Issue, SEBI Market Ban Continues With Limited Relief

Mumbai: The Securities Appellate Tribunal (SAT) on Friday allowed Zee Entertainment Enterprises Limited and its managing director and chief executive, Punit Goenka, to complete a proposed Rs 3,100 crore warrant issue to a promoter group company.

However, the tribunal said the wider ban imposed by the Securities and Exchange Board of India (SEBI) would continue. The relief is limited only to completing the warrant issue.

Limited Relief

SAT partly allowed applications filed by Zee and Goenka against SEBI’s July 31 order. The regulator had barred Zee from the securities market for two months and Goenka for 12 months.

The ban stopped them from buying, selling or otherwise dealing in securities, including mutual fund units, directly or indirectly.

The tribunal permitted the warrant process on the condition that Zee and Goenka deposit the full penalty amount within one week. SEBI must keep the money in an interest-bearing account.

Deadline Extended

SAT also extended the deadline for issuing the warrants by one week from August 14. The company had said the earlier deadline was due to expire on Friday.

Zee told the tribunal that 76.64 percent of its public shareholders had approved the preferential warrant issue at an extraordinary general meeting. It said the fund-raising could bring about Rs 3,100 crore into the company.

The tribunal noted that public investors hold around 96 percent of Zee. It said the proposed capital raising was likely to benefit these shareholders.

SEBI’s Case

The dispute relates to claims that Zee’s Hyderabad property was mortgaged in 2016 to secure borrowings by four group companies without board or shareholder approval.

SEBI opposed interim relief and argued that the company had acted against shareholder interests. SAT said the remaining arguments would be considered during the final hearing.

Zee may also use mutual fund transactions for normal daily business needs. It cannot use them for any other purpose, including payment of the proposed dividend, under the tribunal’s interim order.

Published on: Friday, August 14, 2026, 04:16 PM IST