Zee Entertainment (ZEEL) had opened over 1% higher today morning at Rs.248 but soon dropped over 5.5% to Rs.231.30 and is now among the top five losers on the BSE.
There are news reports that the Ministry of Corporate Affairs has ordered an inspection of the financial statements and books of accounts of ZEEL after looking into complaints raised by shareholders and independent directors.
There are allegations of corporate governance lapses. The MCA will inspect its books and recording of statements of the company management in the same regard.
Governance issues came to the fore after two independent directors - Sunil Sharma and Neharika Vohra, and non-independent director Subodh Kumar resigned in Nov’19.