Securities Appellate Tribunal refuses to stay SEBI order against Subhash Chandra, Punit Goenka

SEBI in its order had alleged the two were actively involved in diverting company funds to group's other listed entities related to founding shareholders.

An Indian tribunal on Monday dismissed an appeal from former Zee Group Chairman Subhash Chandra and Zee Entertainment Chief Executive Punit Goenka over a ban on the duo by India markets regulator from holding board positions in publicly listed companies.

Zee Entertainment chairman Subhash Chandra. (Mint File)

The Securities and Exchange Board of India (SEBI) on June 12 barred Chandra and Goenka from listed company boardrooms on allegations of fund diversion.

The regulator in its order had alleged the two were actively involved in diverting company funds to the group's other listed entities and firms related to founding shareholders.

The Securities Appellate Tribunal while refusing to vacate the regulator's directions said that it does not see merit in interfering in the regulator's order and also asked the duo to defend themselves before SEBI.