ZEEL shares fell to a day low of Rs 100.40 on Monday after SEBI barred the company and its promoters from the securities market.

Here’s what SEBI actually did. It barred Zee Entertainment from the securities market for two months.

Chairman Emeritus Subhash Chandra and MD and CEO Punit Goenka got harsher treatment, both banned for a full year.

The regulator broke the penalties down individually too, Rs 60 lakh on Chandra, Rs 58 lakh on Goenka, and Rs 30 lakh on Zee itself, adding up to a combined Rs 1.48 crore.

The case goes back to Zee’s Hyderabad property. SEBI found it was pledged as collateral to secure Rs 726 crore worth of loans taken by four Essel Group entities linked to the promoters.

The regulator’s issue is that this happened without proper board or shareholder sign off, and wasn’t disclosed the way it should have been. Zee isn’t taking this quietly.

It says legal advice is underway, but maintains the order has no bearing on its Rs 3,144 crore fundraise, which shareholders had just approved days earlier at a July 31 EGM.

That approval covers issuing 249.5 million convertible warrants to promoter entity Sunbright Mauritius Investments at Rs 126 each, a move that could push promoter holding up to nearly 23.79%.

Worth noting, a similar attempt last July couldn’t get enough votes. By 11:51 am, ZEEL was trading at Rs 102.90 on the BSE, down 10.87% on the day.

Tired of guessing stocks to trade in daily? Tradz by EquityPandit empowers you with powerful tools like daily stock scans for Intraday, Swing & Investing, Market Predictions and much more. Download the Tradz by EquityPandit app today and take control of your investments!