Securities Appellate Tribunal refuses to stay SEBI order against Subhash Chandra, Punit Goenka

The Securities Appellate Tribunal has upheld market regulator SEBI's interim order against Zee Entertainment Enterprises Ltd.'s Subhash Chandra and Punit Goenka.The tribunal directed Chandra and Goenka to file a response to SEBI's order within two weeks, and also asked the regulator to fix a date for hearing within a week.The appellate tribunal had reserved its order on June 27.

SEBI had barred Goenka and Chandra from holding any directorial positions in any listed company on June 12 following allegations of fund diversion. They, according to the regulator, siphoned Rs 200 crore of Zee's fixed deposit with Yes Bank Ltd. for the benefit of Zee’s group companies. Later, while being probed about this, Zee submitted that it had received the money back.But the regulator alleged that the funds had originated from Zee's account. This, according to SEBI, was part of an elaborate scheme orchestrated by Chandra, Goenka to divert funds from Zee.Both Goenka and Chandra approached the appellate tribunal on June 13.