Madhabi Puri-Buch, chairperson, the Securities and Exchange Board of India (Sebi), who is facing allegations of conflict of interest, has a new fight on her hands — from Subhash Chandra, the chairman emeritus of Zee Entertainment Enterprises Ltd (Zee).
Chandra has accused Puri-Buch of being ‘corrupt’ and said he was approached by a person named Manjit Singh in February this year.
The media baron alleged Manjit Singh claimed all the pending issues with Sebi will be resolved for a “price’’. Further details of Singh were not disclosed.
Responding to his accusations, a Sebi official said that they were “opportunistic’’ and “completely baseless’’.
Chandra blamed Sebi for putting up road blocks before Zee’s proposed $10-billion merger with Sony. The merger was on track, with approvals received from the stock exchanges.
However, Chandra said, Sebi instructed both the BSE and the NSE to intervene in the NCLT (National Company Law Board) proceedings and scuttle the deal with Sony.
He said Sony then pulled the plug on the deal, which resulted in substantial erosion of minority shareholder wealth.
Buch had also passed a confirmatory order against Chandra and Punit Goenka, managing director and CEO of Zee, in August last year which had said that Goenka and Chandra shall not hold the position of a director or a key managerial personnel (KMP) in Zee, Zee Media Corporation Ltd, Zee Studios Ltd (a wholly owned subsidiary of Zee) and Zee Akaash News Pvt Ltd (a wholly owned subsidiary of Zee Media Corporation).
They will not hold senior positions in any resultant company that is formed pursuant to a merger or amalgamation of these companies with any other firm.
This confirmatory order was subsequently stayed by the Securities and Appellate Tribunal (SAT).
Earlier, in an interim order in June 2023, Sebi had barred Chandra and Goenka from holding the position of a director or KMP in any listed company.
“I am questioning today that Sebi is supposed to protect the interest of the minority shareholder and she (Buch) succeeded in pushing away Zee getting merged with Sony. Who has lost money?
“Subhash Chandra and family not much. We are only 4 per cent shareholders. A 95.6 per cent shareholders have suffered huge losses. The shares from ₹400 have fallen to ₹120. Who has suffered, all minority shareholders... just because of her (Buch),’’ he alleged.
In a separate development, SAT adjourned the plea filed by Chandra against the market regulator in the alleged fund diversion case.
While Chandra’s counsel sought more time, this was reportedly objected to by Sebi. The matter will come up for hearing later this month.
