Shares of Zee Entertainment Enterprises fell over 6.50 per cent in morning trade on Tuesday after SEBI banned Essel Group chairman Subhash Chandra and ZEEL's Punit Goenka from holding any directorial or key managerial position in any listed firm.

The stock tumbled 6.28 per cent to ₹182.60 apiece on the BSE after a weak beginning.

On the NSE, it tanked 6.59 per cent to ₹182 each share.

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In an interim order on Monday, SEBI barred Essel Group chairman Subhash Chandra and ZEEL MD and CEO Punit Goenka from holding the position of a director or key managerial personnel (KMP) in any listed company for siphoning off funds of the media firm.

The case pertains to Chandra, who was also the chairman of Zee Entertainment Enterprises Ltd (ZEEL) during the alleged violation, and Goenka having abused their position as directors or KMPs of a listed company for siphoning off funds for their own benefit.

In its interim order, SEBI noted that Chandra and Goenka alienated the assets of ZEEL and other listed companies of Essel Group for the benefit of associate entities, which are owned and controlled by them.

SEBI noted that the share price of ZEEL has come down from a high of close to ₹600 per share to the current price of less than ₹200 per share during the period FY19 to FY23. This erosion of wealth despite the company being so profitable and generating profit after tax consistently would lead to a conclusion that "all was not well with the company".

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