Zee Group’s promoters Subhash Chandra and Punit Goenka moved the Securities Appellate Tribunal (SAT) yesterday, challenging the Indian markets regulator (SEBI)’s order that banned them from holding board positions in listed companies, sources privy to the information said.

The bench has posted the matter for further hearing on Thursday, the sources said, according to a Reuters report from Bengaluru.

The Securities and Exchange Board of India (SEBI) on Monday banned Chandra and Goenka (the father-son duo) for a year, saying they were actively involved in diverting company funds to the group’s related entities.

Zee did not immediately respond to Reuters’ request seeking comment.

Worries resurfaced over a potential delay of its merger with the local unit of Japan’s Sony Corp, Culver Max, which was formerly called Sony Pictures Networks India.

Sony did not immediately respond to a Reuters request seeking comment.

Zee’s board is reviewing the SEBI order, company’s Chairman R. Gopalan said in a statement, adding that the company is seeking “appropriate” legal advice before its next move.

SEBI’s ban could further delay the merger between Zee and Sony, especially with Goenka slated to become the managing director and chief executive of the merged entity.

Sony and Zee decided to merge their television channels, film assets and streaming platforms in late 2021. However, the deal has been delayed due to reasons including a legal battle with lenders over loan defaults by a Zee group entity and reports that stock exchanges were reconsidering approvals for the merger.

In February, an Indian tribunal, according to Reuters, put on hold insolvency proceedings initiated by lender IndusInd Bank Ltd against Zee, in a major relief for the media company. Later, the company settled its dispute with the lender.

Goenka said in February that the focus of the company continues to be the timely completion of the proposed merger with Sony.