Indian tribunal allows Zee Entertainment to proceed with warrants issue; shares rise

Business Recorder reported that an Indian appeals tribunal has partly lifted a securities market ban on Zee Entertainment, letting the broadcaster press ahead with a warrant issue meant to raise funds. The Securities Appellate Tribunal made its decision on Friday, and Zee shares closed 5.7% higher that day.

The tribunal, which reviews appeals against orders from SEBI, cleared the company to allot fully convertible warrants to a group entity linked to its promoters through a preferential issue. SEBI had imposed a two-month market ban on Zee in July and a one-year bar on CEO Punit Goenka and Founder-Chairman Emeritus Subhash Chandra. The board had approved convertible warrants worth 31.44 billion Indian rupees ($329.5 million) last month.

The tribunal kept the company's debarment from securities markets in place, aside from the narrow permission to finish the warrant issue. It also pushed the warrant deadline back by one week, from an original expiry date of August 14.