The Securities and Exchange Board of India (SEBI) has rejected a settlement application filed by Zee Entertainment Enterprises Limited (ZEEL) and its CEO Punit Goenka, The Storyboard18 reported yesterday.

The probe’s scope has been broadened to include ZEEL’s former chairperson, Subhash Chandra, amidst allegations of fund diversion and other irregularities.

The settlement plea, filed in connection with accusations of non-compliance with SEBI’s Listing Obligations and Disclosure Requirements Regulations, was dismissed by SEBI’s Whole-Time Members panel. Instead, the matter has been referred for further investigation under Section 11B of the SEBI Act, 1992. SEBI emphasized that findings from the ongoing investigation will subsume allegations detailed in a July 2022 show-cause notice.

The regulator’s adjudication order, issued on Thursday, the Storyboard18 report added, stated that additional investigation would incorporate evidence from earlier probes, including examination reports and related documents. These materials will form the basis for new show-cause notices to ZEEL, Chandra and Goenka.