<p>Shares of Zee Entertainment fell nearly 7 per cent on Tuesday, a day after the Securities and Exchange Board of India (SEBI) barred its promoters from holding board positions in any listed company for one year, potentially delaying its merger with a unit of Sony.</p>.<p>The markets regulator on Monday said that Zee group promoters Subhash Chandra and Punit Goenka were actively involved in diverting company funds to the group's related entities.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/business/business-news/sebi-bars-zees-chandra-goenka-from-company-boards-1227251.html" target="_blank">Sebi bars Zee's Chandra, Goenka from company boards</a></strong></p>.<p>Sony and Zee decided to merge their television channels, film assets and streaming platforms in late 2021. However, the deal has been delayed due to reasons including a legal battle with lenders over loan defaults by a Zee group entity and reports that stock exchanges were reconsidering approvals for the merger.</p>.<p>Punit Goenka was slated to become the merged entity's managing director and chief executive as part of the deal.</p>.<p>While Chandra and Goenka can appeal against the order, SEBI's ban will be a pain point in its merger with Sony, said Amit Kumar Gupta, founder and chief investment officer at Delhi-based equity research firm Fintrekk Capital.</p>.<p>Zee's board is currently reviewing the SEBI order, and appropriate legal advice is being sought in order to take the next steps as required, Chairman R. Gopalan said in a statement.</p>.<p>In February, the National Company Law Tribunal (NCLT) put on hold insolvency proceedings initiated by lender IndusInd Bank Ltd against Zee, in a major relief for the media company. Later, the company settled its dispute with the lender.</p>.<p>Goenka said in February that the focus of the company continues to be the timely completion of the proposed merger with Sony.</p>.<p>Zee shares recovered some losses and were trading down 1.7 per cent, as of 10:29 am.</p>
<p>Shares of Zee Entertainment fell nearly 7 per cent on Tuesday, a day after the Securities and Exchange Board of India (SEBI) barred its promoters from holding board positions in any listed company for one year, potentially delaying its merger with a unit of Sony.</p>.<p>The markets regulator on Monday said that Zee group promoters Subhash Chandra and Punit Goenka were actively involved in diverting company funds to the group's related entities.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/business/business-news/sebi-bars-zees-chandra-goenka-from-company-boards-1227251.html" target="_blank">Sebi bars Zee's Chandra, Goenka from company boards</a></strong></p>.<p>Sony and Zee decided to merge their television channels, film assets and streaming platforms in late 2021. However, the deal has been delayed due to reasons including a legal battle with lenders over loan defaults by a Zee group entity and reports that stock exchanges were reconsidering approvals for the merger.</p>.<p>Punit Goenka was slated to become the merged entity's managing director and chief executive as part of the deal.</p>.<p>While Chandra and Goenka can appeal against the order, SEBI's ban will be a pain point in its merger with Sony, said Amit Kumar Gupta, founder and chief investment officer at Delhi-based equity research firm Fintrekk Capital.</p>.<p>Zee's board is currently reviewing the SEBI order, and appropriate legal advice is being sought in order to take the next steps as required, Chairman R. Gopalan said in a statement.</p>.<p>In February, the National Company Law Tribunal (NCLT) put on hold insolvency proceedings initiated by lender IndusInd Bank Ltd against Zee, in a major relief for the media company. Later, the company settled its dispute with the lender.</p>.<p>Goenka said in February that the focus of the company continues to be the timely completion of the proposed merger with Sony.</p>.<p>Zee shares recovered some losses and were trading down 1.7 per cent, as of 10:29 am.</p>