Sony Unit Says Monitoring SEBI Move On Merger Partner Zee

A unit of Sony Corp. is closely monitoring the regulatory developments linked to Zee Entertainment Enterprises Ltd. after key personnel of the media firm were barred from holding board positions.

Sony Pictures Entertainment has taken "very seriously" an interim order by the Securities and Exchange Board of India that barred Essel Group Chairperson Subhash Chandra and Zee Entertainment Chief Executive Officer Punit Goenka, according to a statement on Wednesday.

"There have been several erroneous press reports speculating about the future of ZEE's planned merger with SPNI [Sony Pictures Networks India] following SEBI's interim order against Subhash Chandra and Punit Goenka," a spokesperson with California-based Sony Pictures Entertainment said. "We take very seriously the SEBI interim order and will continue to monitor developments that may affect the deal."

On June 12, SEBI barred Chandra and Goenka from holding the position of a director or a key managerial person in any listed company board.

The market regulator accused the father-son duo of abusing their position to siphon funds for their own benefit. The two have appealed against the SEBI order.