India's market regulator bars Zee's Goenka and Chandra from four group companies

Aug 14 (Reuters) - Indias market regulator on Monday barred Zee Entertainments (ZEE.NS) Subhash Chandra and Punit Goenka from the boardrooms of four Zee Group companies including Zee Entertainment Ltd (ZEEL), according to an order published on the regulators website.

The other three Zee group companies include - Zee Media Corporation, Zee Media Corp and Zee Aakash News.

According to Securities and Exchange Board of India (SEBI) Chandra and Goenka cannot be directors in any entity which is formed after merger, amalgamation of the four companies.

Thereby impacting Goenkas directorship post merger of Zee and Sony.

This is a slight variation of its previous order where SEBI had barred the duo from company boards.

In the order, Madhabi Puri Buch, chairperson, SEBI said that Goenkas conduct as Managing Director and Chief Executive Officer of ZEEL was found to in violation of norms to prevent fraud.

\“His actions were in direct conflict with the interests of 96% public shareholders of ZEEL, necessitating imposition of temporary restraint on him,\” said Buch.