The Securities Appellate Tribunal (SAT) has declined to grant an interim stay on the Securities and Exchange Board of India’s (SEBI) order concerning Subhash Chandra and Puneet Goenka in the Zee Enterprises matter. SEBI’s order prohibits them from holding key managerial positions in any listed company.

SAT stated that the ex parte ad interim order was issued due to the urgency caused by several circumstances, including the diversion of funds from a listed company to related parties controlled by the appellants, IANS reported.

The tribunal found no evidence presented by the appellants to suggest any irregularity or illegality in the issuance of the impugned order.

SAT emphasized that the appellants should provide evidence and file objections before the WTM (Whole Time Member) to demonstrate that the funds transferred by Zee Enterprises to the related entities were for valid reasons and not involved in round tripping of funds.

The contention made by the appellants that there was no urgency to pass the interim order at this stage since the transactions occurred in the 2019-20 financial year was deemed unacceptable by SAT.

SEBI, in its response to SAT, highlighted that the Chairman Emeritus and the Managing Director and CEO of Zee Enterprises had diverted public funds to private entities.

Subhash Chandra and Puneet Goenka had approached SAT to challenge the SEBI order that bars them from holding director positions or key management posts in any listed company based on alleged siphoning of funds from Zee Enterprises.