Following the reports going around of Sebi founding financial discrepancies in the accounts of Zee Entertainment Enterprises Ltd (ZEEL), the company's shares witnessed a fall of 12% in the mid-session trade on Wednesday.
The stock of the company dived down 11.58 per cent to Rs 170.65 apiece on the BSE. ZEEL shares tumbled 11.39 per cent to Rs 170.70 per piece on the NSE.
In the mid-session trade, the scrip also hit its lower circuit limit on the bourses.
The 30-share BSE Sensex benchmark rose 90.17 points or 0.12 per cent to 73,147.57, while Nifty of the NSE rose 40.25 points to 22,237.20.
As per the reports, during Sebi's probe into Zee's founders, the regulator discovered that approximately Rs 2,000 crore (equivalent to USD 241 million) may have been diverted from the company.
However, the company spokesperson clarified that the reports related to accounting issues are "incorrect and false".
The report suggested that the Securities and Exchange Board of India (Sebi) has been in conversation with senior officials at Zee, including its founders Subhash Chandra and his son Punit Goenka, and some board members to explain their stance.
Further, the report noted that the amount found missing is not final and may change after Sebi reviews the responses from the company executives.
A ZEEL spokesperson said, "The reports and rumors pertaining to accounting issues in the company are incorrect and false. Pursuant to the Securities Appellate Tribunal (SAT) order, which granted relief to the current Key Managerial Personnel (KMP), the company has been in the process of providing all the comments, information, or explanation requested by SEBI, and has extended the complete co-operation on all aspects."
The shares of ZEEL yesterday, settled 8 per cent higher amid reports that Zee and Sony Pictures Networks (India) are working to salvage their USD 10-billion merger.
ZEEL shares have seen a massive downfall after the collapse of its merger with Sony Group Corp’s India unit.
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