SEBI, in a three-page order issued on Thursday, dismissed show-cause notices issued against ZEEL, its founder Subhash Chandra, and his son Punit Goenka for alleged violations of SEBI regulations. However, the order directed that the allegations in the show-cause notices be merged with the ongoing investigation.

Subhash Chandra is the director and former chairman, while Punit Goenka serves as the executive director, CEO, and MD of the company.

The order stated, 'The allegations in the SCN dated July 06, 2022 issued by AO are to be subsumed with the findings of the further investigation carried out by SEBI in the instant matter. Accordingly, the content of the SCN dated July 06, 2022 issued by the AO including the examination report and all the relied upon documents will be treated as integral part of the further investigation report by SEBI in the matter of ZEEL.'

This implies that the findings of the ongoing investigation will now encompass the allegations raised in the show-cause notices.

ZEEL was facing an adjudication proceeding under Section 23E of the Securities Contracts (Regulation) Act, 1956. The case was initially assigned to Adjudicating Officer Parag Basu on October 28, 2021, and later reassigned to Amit Kapoor on December 27, 2024.

'In this regard, it has been observed that subsequent to completion of investigation in the instant matter, it has been decided by the Competent Authority to proceed against the Noticees under Section 11B of SEBI Act 1992,' the order stated.

Zee Entertainment Enterprises stock has been under pressure since the termination of its merger deal with Sony Group. Shares have declined nearly 60% in the past 12 months.

Zee Entertainment Enterprises is a leading content company offering entertainment content to diverse audiences. With a presence in over 190 countries and a reach of more than 1.3 billion people around the globe, ZEEL is among the largest global media & entertainment companies across genres, languages, and integrated content platforms.

The company’s consolidated net profit from continuing operations surged by 61.28% to Rs 209.5 crore in the second quarter of fiscal year 2025, compared to Rs 129.9 crore in the same period last year. However, total income declined by 18.94% to Rs 2,034.4 crore, down from Rs 2,509.6 crore in Q2 FY24.