Zee Entertainment's two promoter entities settle a case with Sebi

Two promoter entities of ZEEL, Cyquator Media Services and Essel Corporate LLP, on Friday settled a case with markets regulator Sebi by paying more than Rs 9 lakh as settlement amount.

It was alleged that the entities violated insider trading norms and disclosure lapses under SAST (Substantial Acquisition of Shares and Takeovers) regulations.

Sebi had conducted an examination in the matter pursuant to receipt of letters from the Chief Compliance Officer of Zee Entertainment Entreprises Ltd (ZEEL) on unusual trading pattern and hammering of stock prices of equity shares of ZEEL. These letters were received by the regulator in December 2018 and January 2019.

Pending the adjudication proceedings, Cyquator Media Services Ltd and Essel Corporate proposed to settle the case without admitting or denying the findings of fact and conclusions of law.

The High Powered Advisory Committee of Sebi considered the settlement terms proposed by the entities and recommended the case for settlement on payment of Rs 6.21 lakh by Cyquator Media and Rs 3 lakh by Essel Corporate LLP.

Sebi noted that the amount was remitted by both the firms in June.

"Therefore, in view of the acceptance of the settlement terms and the receipt of settlement amount as above by SEBI, the instant adjudication proceedings against Cyquator Media Services and Essel Corporate LLP vide SCN dated November 25, 2021 are disposed of," it added.