Mumbai: The Securities and Exchange Board of India (SEBI) in an unprecedented action has passed an interim order against Subhash Chandra chief of Essel group and Punit Goenka, managing director & CEO of ZEE Entertainment Enterprises Ltd (ZEE) . The order states that they cease to hold any directorial positions in any of the listed companies or its subsidiaries until further orders.

An objection can be filed within 21 days and this SEBI order will be placed before the board within 7 days.

The capital market regulator has alleged that Chandra and Goenka as Directors abused their positions and siphoned off funds. The promoter family is only holding 3.99 per cent shares in Zee, Subhash Chandra and Punit Goenka continue to be at the helm of affairs of Zee.

In a 16-page order, Ashwani Bhatia, whole time member of SEBI said, “Considering the above, I am of the opinion that, while the investigation is still underway, their continuation as a director/KMP in any listed company or its subsidiaries is likely to be prejudicial to the interest of those companies, particularly its investors.’’

‘’Therefore, I am convinced that, pending completion of investigation by Sebi, interim directions need to be issued to safeguard the management of such companies and protect their investors and other stakeholders."