The Securities Appellate Tribunal (SAT) on Wednesday refused to grant a stay on the order passed by the Securities and Exchange Board of India against Punit Goenka, the former MD & CEO of Zee Entertainment Enterprises Ltd.

Sebi has barred Goenka from holding key positions in four Zee group firms and in the merged entity of Zee and Sony Pictures Networks India till the regulator completes its investigation for alleged fund diversion.

The SAT asked the market regulator to file a reply by September 4 to the appeal filed by Goenka.

Goenka had approached the appellate tribunal last week against the market regulator’s order.

Sebi has alleged that Goenka and his father Subhash Chandra, the former chairman of Zee, abused their position as directors or Key Managerial Personnel (KMPs) of a listed company by siphoning off funds for their own benefit.

Sebi on August 14 passed a confirmatory order where it restrained Goenka and Chandra from holding the post of director or KMP in at least four Zee group companies as well as in the merged entity of Zee and Sony, until further directions.

Goenka was also restrained from becoming the managing director of the merged entity.

Sebi also said it will complete its probe against the duo within eight months.

At the hearing on Wednesday, the division bench comprising Justice Tarun Agarwala and technical member Meera Swarup declined to stay Sebi’s confirmatory order.

The bench, however, said it was not satisfied with the probe taking eight months particularly in the context of the proposed merger with Sony where there is public interest involved.

On August 10, the National Company Law Tribunal (NCLT) had approved the merger of Zee and Culver Max Entertainment (formerly Sony).

"If the public says he should be the director, then it does have a bearing,’’ the bench said while directing Sebi to file a reply by September 4.

Goenka will have to file a rejoinder by September 7.