SEBI Fine ZEEL Promoter for Disclosure Lapses
In a recent development, the Securities and Exchange Board of India (SEBI) has taken action against Cyquator Media Services, a promoter entity of ZEE Entertainment Enterprises Ltd (ZEEL), for failing to meet disclosure obligations. Cyquator has been fined Rs 4 lakh for inadequate disclosures related to specific trades involving ZEEL shares.
SEBI conducted a thorough examination of the entity’s trading activities in ZEEL shares, focusing on potential violations of insider trading regulations during the period spanning from January 1 to December 26, 2019. In its order issued on Friday, SEBI highlighted that Cyquator Media Services, as a promoter, failed to make timely disclosures regarding the creation, invocation, and sale of pledges to ZEEL and the stock exchanges.
Following the examination, a show cause notice was sent to Cyquator, which subsequently submitted its response. The entity argued that the failure to comply with the disclosure requirements within the stipulated timeframe was unintentional, technical, or inadvertent, further stating that it did not derive any unfair advantage or gain from these lapses.
However, SEBI dismissed these contentions, emphasizing that violations of mandatory disclosure obligations outlined in the Prohibition of Insider Trading (PIT) Regulations and Substantial Acquisition of Shares and Takeovers (SAST) Regulations cannot be considered as mere technical or insignificant matters.
By penalizing Cyquator Media Services for the disclosure lapses, SEBI demonstrates its commitment to upholding transparency and accountability in the Indian securities market.
About ZEEL:
Zee Entertainment Enterprises Limited (ZEEL) is a renowned global media and entertainment company. It provides broadcasting services, produces, markets, and distributes films, TV serials, game shows, and children’s programs. Zee Entertainment Enterprises caters to customers around the world.
For more of the Latest News, Click Here
