Securities Exchange Board of India (SEBI) has rejected the settlement applications of Zee Entertainment Enterprise Ltd (ZEEL) and Punit Goenka, and called for further investigation against the two entities as well as Subhash Chandra, Chairman of Essel Group and ex-Chairperson of ZEEL.

“The panel of Whole Time Members of SEBI rejected the settlement applications and also referred the matter to SEBI for further investigation. In this regard, it has been observed that subsequent to completion of investigation in the instant matter, it has been decided by the Competent Authority to proceed against the Noticees under Section 11B of SEBI Act 1992,” said the order issued on January 2.

The applications related to a 2023 SEBI probe that accused Chandra of providing a letter of comfort (LOC) on behalf of related entities to get loans from Yes Bank. The market regulator had banned Chandra and Goenka from holding any managerial or directorial roles in any company following its findings.

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In the latest order, SEBI will issue fresh show cause notice to all three entities, incorporating content from the earlier show cause notice like the examination report and other relevant documents. The matter will now be re-assigned to Amit Kapoor, Adjudicating Officer.

In November 2023, Goenka relinquished his role as the managing director of the company. Later in the same month, Zee’s Board of Directors rejected the reappointment of Goenka as director.