Zee Entertainment on Tuesday said it has expanded the scope of the independent advisory committee formed last week and renamed it as an independent investigation committee, to shore up investor confidence and combat misinformation.
The committee will retain Satish Chandra, retired judge of the Allahabad High Court, as its chairman. Uttam Agarwal and PV Ramana Murthy, independent directors of the company, are members of the panel. The committee will review all company records and information to prepare and present a detailed report to the board, Zee said.
“After a detailed consultation with the audit committee of the company and seeking inputs from Justice Satish Chandra, the board of the Company led by R Gopalan approved the independent investigation committee and has advised it to thoroughly review the allegations levelled by regulators and other parties,” a statement from Zee said.
Media reports last week had suggested that the Securities and Exchange Board of India (Sebi) had widened its ongoing probe into the company for alleged fund diversion. Zee had described the reports as “incorrect and false”.
On Tuesday, Zee said that the investigation committee could appoint or hire an independent agency to assist it in its charter.
“It is pertinent for the board to take concerted action in order to get to the truth of the matter. The independent investigation committee will further guide and empower us to take necessary action in a timely manner,” Gopalan, who is chairman of Zee, said.
Shares of Zee closed trade up 0.79% on Tuesday at Rs 173 apiece on the BSE. On Monday, Sebi in its submission to the Securities and Appellate Tribunal (SAT) had said that Zee’s chairman emeritus Subhash Chandra was not cooperating in the ongoing investigation into the company.
Chandra, who has appealed against Sebi’s August 14, 2023, confirmatory order barring him from holding directorships in Zee firms, has denied the allegations saying that the investigation was damaging his reputation.