Zee Entertainment Enterprises Ltd’s MD and CEO, Punit Goenka, has settled a matter with the Securities and Exchange Board of India (SEBI) by paying Rs 50.7 lakh for an alleged violation of insider trading regulations.

SEBI conducted an investigation and found that certain positive information related to the business expansion of Zee had not been disclosed and was considered to be Unpublished Price Sensitive Information (UPSI), which can affect the securities market. This information pertained to the launch of ZEEPLEX, a pay-per-view service that allowed consumers to watch movies from the comfort of their own homes.

Under the Prohibition of Insider Trading (PIT) Regulations, Goenka was required to implement adequate internal controls to identify and disclose UPSI. However, SEBI found that Goenka failed to do so. After receiving a show cause notice from SEBI, Goenka applied for settlement, which proposed to settle the matter without admitting or denying the findings of fact and conclusions of law through a settlement order.

On March 09, 2023, the High Powered Advisory Committee (HPAC) accepted Goenka’s revised settlement terms, and the matter was settled by Goenka, paying Rs 50.7 lakh to SEBI. The settlement order noted that SEBI would not initiate any other enforcement action against Goenka for the alleged violation.