Zee Entertainment Enterprise on July 17 formed an interim committee to run operations after ex-chairman Shubhas Chandra and CEO Punit Goenka failed to rescind the market regulator’s ban on them holding board positions.

The interim committee will be under the supervision of Zee’s board.

In June, the Securities and Exchange Board of India banned Shubhas Chandra and Punit Goenka from holding board positions for a year, alleging they were directing funds to the group’s other listed entities and firms related to founding shareholders.

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

The ruling comes as Zee and India’s unit of Japan’s Sony group are closing on a merger to form a $10 billion TV enterprise announced in 2021.

Zee Entertainment shares closed 7.04% at Rs 231.20 apiece on NSE.