The order will determine whether ZEEL can proceed with the Rs 3,143 crore preferential issue and whether the requested 14-day period can effectively start from August 12.
Brajesh Kumar
August 12, 2026 / 14:54 IST
SAT reserves order on Zee Entertainment, Puneet Goenka interim relief pleas
- SAT reserved order on ZEEL, Goenka’s market ban pleas.
- ZEEL seeks to proceed with Rs 3,143 cr warrant issue.
- SEBI banned them over property title deed allegations.
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The Securities Appellate Tribunal (SAT) on Wednesday reserved its order on interim relief pleas filed by Zee Entertainment Enterprises Ltd (ZEEL) and CEO Punit Goenka against a July 31 Securities and Exchange Board of India (SEBI) order barring them from accessing the securities market.
ZEEL sought permission to proceed with its proposed Rs 3,143 crore preferential warrant issue, saying the company faces a limited window to complete the fundraise. The company told SAT that shareholders had approved the issue and it had received in-principle approval from the stock exchanges. The warrants are proposed to be issued to Sunbright Mauritius Investments, a promoter-group entity.
Senior Advocate Ravi Kadam, appearing for ZEEL, sought relief from the operation of the SEBI order to allow the company to implement the approved resolutions. He also sought that the 15-day window under Regulation 170 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations be counted from August 12.
“The operation of this order may not come into effect till we complete this process and give effect to these resolutions because they are for the benefit of the company,” Kadam told the tribunal.
During the hearing, SAT questioned SEBI on the rationale for preventing ZEEL from completing the fundraise during its two-month market-access ban when the company could undertake the transaction after the restriction expires.
SEBI argued that allowing the preferential issue during the debarment would dilute the effect of the market-access restriction imposed after regulatory violations.
The regulator also opposed Goenka’s participation, arguing that he is the ultimate beneficial owner of Sunbright Mauritius Investments and is himself subject to a one-year securities-market ban. Allowing the allotment through the Mauritius entity, SEBI said, could effectively provide him indirect access to the securities market.
Goenka’s counsel countered that the warrants would be issued to Sunbright and not directly to Goenka, and that the transaction would bring Rs 3,143 crore into ZEEL. The counsel also argued that postponing the issue could materially alter its economics as preferential issue pricing is linked to the company’s market price.
The SEBI action relates to title documents of a Hyderabad property owned by ZEEL. SEBI alleged that the title deeds were handed over to Indiabulls Housing Finance as security for loans taken by promoter-linked private entities without required corporate approvals.
Senior Advocate Chetan Kapadia, appearing for SEBI, argued that, “property of the company was given as a security without authorisation of the board.” He further said, “The chairman and the managing director have made available a property owned by a listed company to cover security in respect of their private loans taken by their private companies”.
He also argued, “Related party transaction compliances are not met with before creating security or handing over title deeds”.
ZEEL disputed the allegations and said the documents were taken without authorisation and there was no direct finding establishing the company’s knowledge. The company also argued that it had not itself engaged in fraudulent activity in the securities market.
After hearing the arguments, SAT reserved its order on the interim relief pleas.
Brajesh Kumar is Associate Editor at Moneycontrol with over two decades of experience in financial journalism. He primarily covers capital markets, with a strong focus on SEBI and regulatory developments. Interest in tax, healthcare, and pharmaceutical-related issues. Previously, he has worked with Zee Business, CNBC Awaaz, and News18 India.
X( (Twitter): @BrajeshKMji
first published: Aug 12, 2026 02:20 pm
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