Zee Entertainment shares hit a day high of Rs 104.74 on Friday morning after SAT stayed a SEBI order barring the company from the market.

A tribunal ruling is behind the move. The Securities Appellate Tribunal gave Zee interim relief in its case against SEBI, clearing the way for a fundraise the company had been racing to complete.

A quick recap of how things got here. SEBI had barred Zee from the securities market for two months, and separately barred CEO Punit Goenka and former Chairman Subhash Chandra for a full year.

The case involves a Hyderabad property owned by Zee. SEBI found its title deeds had been pledged as security for loans taken by promoter-linked firms, without the company’s board ever approving it.

SAT didn’t overturn SEBI’s findings. It simply paused the market ban, letting Zee move forward with a Rs 3,143 crore preferential warrant issue to a promoter-group entity called Sunbright Mauritius Investments.

The tribunal also allowed the company to use its mutual fund holdings to pay out dividends.

One condition remains though. Zee still needs to deposit the penalty SEBI had imposed before it can fully act on this relief.

The company had argued before the tribunal that shareholders and exchanges had already cleared the fundraise, and that the clock was ticking to finish it.

SEBI pushed back hard, especially on Goenka’s connection to the Mauritius entity receiving the warrants.

Shares were trading at Rs 103.27 on the NSE as of 12:05 pm on 14 August, up 6.74% for the day.

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