The Securities Appellate Tribunal (SAT) has made changes to its previous ruling, which instructed the Securities and Exchange Board of India (SEBI) to appoint another whole-time member (WTM) for the final order in the Punit Goenka case. In response to SEBI’s plea, SAT has now directed SEBI to appoint another WTM or any authorized officer of higher rank to handle the matter.
Earlier, SAT had dismissed the plea by Zee Entertainment Enterprises MD and CEO, Punit Goenka, and his father Subhash Chandra, chairman of the Essel Group, challenging SEBI’s order that barred them from holding key positions on any listed company’s board. To ensure impartiality, SAT had ordered the appointment of another WTM to hear their objections before issuing the final order.
SEBI filed an application seeking modification of the order, requesting the tribunal to direct the appointment of SEBI’s current WTM, Ananth Narayan Gopalakrishnan, or any authorized person to address Goenka’s objections and issue the final order. SEBI pointed out the shortage of WTMs, with one retiring and another involved in the settlement panel for the case.
Representing Goenka, Janak Dwarkadas opposed SEBI’s appeal, criticizing their delay in filing the application and seeking a certificate of independence for WTM Ananth Narayan. Dwarkadas argued that SEBI could have heard the matter earlier, and the application has caused unnecessary delays while the order works against Punit Goenka.
Somasekhar Sundaresan, representing Chandra, emphasized the importance of maintaining the balance of power and cited past precedents of the sub-committee of SEBI or the chairperson hearing similar matters.
In June, SEBI barred Chandra and Goenka from holding managerial positions in listed entities due to alleged fund siphoning and abuse of their positions for personal financial gain. Following the SAT ruling, the ZEE board formed an interim committee of senior executives to manage the company’s operations.
