Shares of Zee Entertainment Enterprises Ltd (Zee) on Tuesday came under pressure on reports that the ministry of corporate affairs (MCA) has ordered an inspection of the financials of the company. On the BSE, the Zee scrip, which opened in the green at Rs 262.80, fell to a day’s low of Rs 255.70 and later settled at Rs 245.05, a drop of 4.17 per cent, or Rs 10.65 over the previous close.

The stock reacted adversely to a report by a TV channel that said the MCA had ordered an inspection of the financial statement and books of accounts of Zee and that the Western regional director of the ministry assigned for the inspection. The news, however, could not be confirmed, with a spokesperson for the company not being available for comments.

Earlier, in November, three directors of the company, which included Sunil Sharma (independent), had resigned. Sharma had resigned on November 24, while Ms Subodh Kumar (non-independent) and Neharika Vohra (independent) had quit on November 22. Sharma had said that his resignation followed the sale of shares by the promoter group and the reconstitution of the board.

However, Kumar and Vora gave certain reasons. One of them was film advances given in 2018-19 to the tune of Rs 2200 crore.