In a statement, the company said it has received SEBI’s order and is seeking legal advice on the matter.
“The Company firmly believes that the order from SEBI has no direct bearing on the fundraising exercise,” a company spokesperson said.
Zeesaid that, following the regulatory approvals from the stock exchanges and the approval of shareholders at the Extraordinary General Meeting held on July 31, 2026, it will continue with the required steps to complete the fund-raising exercise.
According to the company, the fundraising is aimed at strengthening its financial foundation while continuing to create value for its stakeholders.
The company also addressed the allegations referred to in the SEBI order, saying it would take the required measures in accordance with the law.
“With regard to the allegations levied against the Company and its Promoters, the required measures in accordance with the law will be taken to protect the interest of all stakeholders,” the spokesperson said.
Shareholders approved ₹3,143.5 crore warrant issue
The clarification comes days after shareholders approved a ₹3,143.5 crore preferential warrant issue through the allotment of 24.95 crore warrants at ₹126 apiece. The resolution, which received 76.6% shareholder approval, would raise the promoter group’s stake in the company to 23.8% if implemented.
What SEBI’s final order says
SEBI’s final order restrains Zee Entertainment from participating in the securities market for two months, while promoters Punit Goenka and Subhash Chandra have been barred for 12 months each. The regulator has also imposed penalties of ₹30 lakh on Zee, ₹58 lakh on Goenka and ₹60 lakh on Chandra.
The regulator’s action relates to allegations that a Hyderabad property owned by Zee was used to secure borrowings worth ₹726 crore for four Essel Group entities without Board or Audit Committee approval, with SEBI alleging violations of the PFUTP and LODR regulations.
Legal questions remain over implementation
The order has raised questions over whether the shareholder-approved warrant issue can proceed during the restraint period. While some securities law experts believe the directions could affect its implementation, Zee has maintained that the SEBI order has no direct bearing on the fund-raising exercise.
