Sebi bars Subhash Chandra, Punit Goenka from securities market for one year over ZEEL land pledge
In its 150-page final order issued on Friday, the market regulator also imposed monetary penalties totalling ₹1.48 crore on Chandra and Goenka. ZEEL has been fined ₹30 lakh and prohibited from accessing the securities market for two months.
- Aug 1, 2026,
- Updated Aug 1, 2026 10:40 AM IST
The Securities and Exchange Board of India (Sebi) has barred Zee Entertainment Enterprises Ltd. (ZEEL) founder Subhash Chandra and Managing Director and CEO Punit Goenka from accessing the securities market for one year each over the unauthorised pledging of the company's Hyderabad land to secure loans taken by promoter-linked Essel Group companies.
In its 150-page final order issued on Friday, the market regulator also imposed monetary penalties totalling ₹1.48 crore on Chandra and Goenka. ZEEL has been fined ₹30 lakh and prohibited from accessing the securities market for two months.
Deloitte flagged missing title deeds
Sebi said its investigation was initiated after ZEEL's statutory auditor, Deloitte Haskins & Sells LLP, highlighted in its FY19 audit report that the title deeds of certain immovable properties were missing.
The regulator found that the original title deeds of ZEEL's Hyderabad land were deposited with Indiabulls Housing Finance on December 27, 2018, to create a first-ranking mortgage against loans availed by four Essel Group entities. The companies had collectively borrowed ₹726 crore, with Essel Home acting as the co-borrower.
No board or shareholder approval
According to Sebi, the borrowing entities were ultimately controlled by Subhash Chandra, Punit Goenka and their family members through multiple layers of shareholding, making the transaction a related-party transaction under applicable accounting standards.
The regulator said Chandra had signed a declaration on behalf of ZEEL stating that all necessary corporate approvals had been obtained before the mortgage was created. However, its investigation found no evidence that the proposal had received prior approval from ZEEL's audit committee, board of directors or shareholders before the company's land was offered as security.
₹3,143.5 cr promoter fund infusion
Separately, ZEEL shareholders approved a preferential issue of 24,94,85,563 fully convertible warrants to a promoter group entity, enabling the company to raise ₹3,143.5 crore and significantly increase promoter ownership.
The proposal was approved at the company's Extraordinary General Meeting (EGM), where shareholders also cleared the implementation of the "Truly Yours" Employee Stock Option Plan (ESOP) for eligible employees of Zee and its subsidiaries.
The warrants will be issued at ₹126 apiece, with the promoter group infusing ₹3,143.5 crore into the company. Upon conversion, promoter shareholding is expected to increase from around 4% to 23.79%, strengthening promoter alignment with the company.
ZEEL said the capital infusion would reinforce its financial position and provide additional resources to pursue growth opportunities across its television, digital, films and music businesses. The company said the fresh capital would support long-term expansion plans, strengthen its competitive position and enable investments in new strategic initiatives.
Shareholders also approved the grant of 3,74,22,835 stock options under the "Truly Yours" ESOP for eligible employees of ZEEL and its subsidiaries. According to the company, the ESOP aims to align employee interests with long-term shareholder value, promote innovation and accountability, and strengthen talent retention as the company pursues its strategic growth ambitions.
The Securities and Exchange Board of India (Sebi) has barred Zee Entertainment Enterprises Ltd. (ZEEL) founder Subhash Chandra and Managing Director and CEO Punit Goenka from accessing the securities market for one year each over the unauthorised pledging of the company's Hyderabad land to secure loans taken by promoter-linked Essel Group companies.
In its 150-page final order issued on Friday, the market regulator also imposed monetary penalties totalling ₹1.48 crore on Chandra and Goenka. ZEEL has been fined ₹30 lakh and prohibited from accessing the securities market for two months.
Deloitte flagged missing title deeds
Sebi said its investigation was initiated after ZEEL's statutory auditor, Deloitte Haskins & Sells LLP, highlighted in its FY19 audit report that the title deeds of certain immovable properties were missing.
The regulator found that the original title deeds of ZEEL's Hyderabad land were deposited with Indiabulls Housing Finance on December 27, 2018, to create a first-ranking mortgage against loans availed by four Essel Group entities. The companies had collectively borrowed ₹726 crore, with Essel Home acting as the co-borrower.
No board or shareholder approval
According to Sebi, the borrowing entities were ultimately controlled by Subhash Chandra, Punit Goenka and their family members through multiple layers of shareholding, making the transaction a related-party transaction under applicable accounting standards.
The regulator said Chandra had signed a declaration on behalf of ZEEL stating that all necessary corporate approvals had been obtained before the mortgage was created. However, its investigation found no evidence that the proposal had received prior approval from ZEEL's audit committee, board of directors or shareholders before the company's land was offered as security.
₹3,143.5 cr promoter fund infusion
Separately, ZEEL shareholders approved a preferential issue of 24,94,85,563 fully convertible warrants to a promoter group entity, enabling the company to raise ₹3,143.5 crore and significantly increase promoter ownership.
The proposal was approved at the company's Extraordinary General Meeting (EGM), where shareholders also cleared the implementation of the "Truly Yours" Employee Stock Option Plan (ESOP) for eligible employees of Zee and its subsidiaries.
The warrants will be issued at ₹126 apiece, with the promoter group infusing ₹3,143.5 crore into the company. Upon conversion, promoter shareholding is expected to increase from around 4% to 23.79%, strengthening promoter alignment with the company.
ZEEL said the capital infusion would reinforce its financial position and provide additional resources to pursue growth opportunities across its television, digital, films and music businesses. The company said the fresh capital would support long-term expansion plans, strengthen its competitive position and enable investments in new strategic initiatives.
Shareholders also approved the grant of 3,74,22,835 stock options under the "Truly Yours" ESOP for eligible employees of ZEEL and its subsidiaries. According to the company, the ESOP aims to align employee interests with long-term shareholder value, promote innovation and accountability, and strengthen talent retention as the company pursues its strategic growth ambitions.