Zee Entertainment Enterprises yesterday said it has formed an interim committee to run operations after ex-chairman Subhash Chandra and CEO Punit Goenka failed to overturn the market regulator’s ban on them holding board positions.

The interim committee will be under the supervision of Zee’s board, a company spokesperson said, according to a Reuters report.

The Securities and Exchange Board of India (SEBI) in June banned Chandra and Goenka from holding board positions in publicly listed companies for a year, alleging they were actively involved in diverting funds to the group’s other listed entities and firms related to founding shareholders.

Last week, the Security Appellate Tribunal refused to vacate the regulator’s decision, saying it did not find any illegality or irrationality in SEBI’s order and saw no merit in interfering.

It directed SEBI to pass a final order by the middle of next month and asked Chandra and Goenka to defend themselves before the regulator.

The ruling comes as ZEE and an India unit of Japan’s Sony Group are closing in on a merger announced in 2021 to form a $10-billion TV enterprise, with Goenka set to become the merged entity’s managing director and CEO.