ZEE Entertainment Enterprises shares tanked 7% today. Here's why

Shares of ZEE Entertainment Enterprises Ltd or ZEEL plunged 7 per cent in Friday's trade amid concerns the proposed merger of the media firm with Sony Pictures Networks India (SPN) could face a fresh setback as the capital market regulator Sebi asked stock exchanges to submit a April 25 order as part of the record, NSE and BSE told National Company Law Tribunal (NCLT).

As per reports, stock exchanges have told NCLT that the promoters of Essel Group's Shirpur Gold Refinery have allegedly redirected company assets to benefit themselves. The notification followed instructions from the Sebi, which had passed down an interim order and show cause notice against the refiner and mentioned violations of other regulatory provision, the ET reported.

Following the development, ZEE Entertainment shares fell 6.56 per cent to hit a low of Rs 179.35 on BSE.

The stock is down 24.68 per cent year-to-date.

Due to the Sebi instruction in the light of its order against the Essel Group entity, the exchanges may be required to reconsider their approvals to the Sony-Zee merger, the exchanges are said to have told the company law tribunal on Thursday.

Sebi had earlier issued an interim order in April against Shirpur Gold Refinery, along with its former chairman Amit Goenka, promoter Jayneer Infrapower and Multiventures, and five others for allegedly siphoning off funds from the company and violating other rules.

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