Sony Takes Indian Regulator’s Order on ZEE Merger Seriously

Sony Pictures Entertainment is not taking the recent regulatory order against ZEE Entertainment directors Subhash Chandra and Punit Goenka lightly. The India Securities and Exchange Board (SEBI) issued an order banning the two from taking key roles at any listed company over allegations of insider trading. This has led to concerns about the impact on the planned merger between Sony Pictures Networks India and ZEE, which would create a new business spanning TV channels, film assets, and streaming services SonyLIV and ZEE5 Global. However, Sony is pushing ahead with the merger despite the uncertain backdrop and erroneous press reports. SEBI’s order claims that Chandra and Goenka were siphoning off money from ZEE into Essel Group for their own financial gain. There are fears that previous regulatory approvals of the merger will be scrapped if the situation worsens for ZEE’s management. ZEE has appealed against the order, but local reports suggest that this has been rejected. The company is currently reviewing SEBI’s order and seeking legal advice.