Zed Entertainment settles an insider trading case with SEBI for Rs 7 lakh

In the instance of an alleged insider trading rule violation by Zed Entertainment Enterprises Limited in 2019, the Securities and Exchange Board of India (SEBI) has issued a settlement order for Rs 7 lakh.

The issue was the company’s delayed notification to the exchanges of the invocation of pledged shares, which constituted an insider trading violation.

From January to December 2019, SEBI looked into the shares of Zed Entertainment, which are traded on the BSE and NSE.

The market watchdog noted in its investigation that the corporation had delayed informing exchanges about the revocation of pledged shares by 54 days in three cases and 27 days in two cases.

According to the allegations, Zed broke PIT rule 7 (2) (b).

Under section 15A(b) of the SEBI Act, the regulator commenced adjudication proceedings against the business.

K. Saravanan was designated as an adjudicating officer to oversee the process and, if necessary, issue fines.

On January 10, 2023, officials from Zed Entertainment met with the SEBI internal committee.

Without acknowledging or disputing the findings of fact, the firm offered to stop the ongoing proceedings with a settlement order.

The company’s payment was accepted and confirmed by the powerful advisory committee of SEBI, which concluded the procedures in April.

The agreement is the most recent in a string of disputes that Zed Entertainment has resolved recently.

Since last week, SEBI has prohibited Chairman Emeritus Subhash Chandra and Managing Director Punit Goenka from serving in any leadership roles.