Zee Entertainment Enterprises Ltd (ZEEL) announced on Friday that its board has established an independent advisory committee chaired by Satish Chandra, a retired judge of the Allahabad High Court, with the aim of mitigating the erosion of investor wealth resulting from speculations, which have led to a negative public perception of the company.
Earlier in the week, media reports suggested that the market regulator, the Securities and Exchange Board of India (SEBI), had discovered financial discrepancies in the company’s accounts. However, ZEEL clarified that these reports were inaccurate and false.
In response to these developments, the board of ZEEL has approved the formation of an independent advisory committee. This committee will facilitate the review and acknowledgement of the widespread circulation of misinformation, market rumours, and speculation that have contributed to the formation of a negative public opinion about the company and subsequent erosion of investor wealth, as stated by ZEEL in a statement.
Dr Satish Chandra, a former judge of the Allahabad High Court, will chair the committee. Additionally, two Independent Directors of the company, Uttam Prakash Agarwal and P V R Murthy, will serve as members, ZEEL stated. The committee will autonomously offer guidance on the necessary measures and future course of action that the board must undertake to safeguard the interests of all stakeholders of the company, as per ZEEL’s statement. Furthermore, the board will periodically seek the expert guidance of the committee on these matters.
During the week of February 16-23, ZEEL shares fell by 5.5 per cent on the BSE, resulting in a decrease in the company’s market capitalisation by Rs 979.73 crore to Rs 16,645.80 crore. However, on Tuesday, ZEEL shares rose by 8 per cent amidst reports of efforts to revive the terminated $ 10 billion merger with Sony Pictures Networks (India).
Also Read: SEBI Detects Discrepancy Of $240 Million In Zee’s Accounts; Stock Slips 11 Per Cent