ZEEL says ‘rumours’ hurting it, forms Advisory Committee to tackle it

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Broadcasting company Zee Entertainment on Friday said it has constituted an Advisory Committee, headed by a former Judge of Allahabad High Court, to tackle “widespread circulation of misinformation, market rumours and speculation” which have led to “erosion of investor wealth” of the firm.

“The Board of Zee Entertainment Enterprises Ltd (ZEEL) has approved to constitute an Independent Advisory Committee that will enable it to review and take cognizance of the widespread circulation of misinformation, market rumours, and speculation that has led to the formation of negative public opinion about the company and consequent erosion of investor wealth,” the company said in a statement.

The development comes close on the heels of a media report raising questions related to “accounting” in the company, prompting stock exchanges NSE and BSE to seek a clarification from ZEEL. In its response to the stock exchanges on February 21, ZEEL had said “reports and rumours pertaining to accounting issues in the company” were “incorrect and false”.

The company said that the Independent Advisory Committee, constituted on Friday, will independently provide guidance on the measures and future course of action that the Board is required to take in order to protect the interests of all the stakeholders of the company.

The Board will seek expert guidance for the Committee on the above matters from time to time.

The Advisory Committee will be presided by Dr Satish Chandra, a former Judge of the High Court of Allahabad, and will also have two independent Directors of the company Mr Uttam Prakash Agarwal and Mr P V R Murthy, ZEE spokesman said in the statement issued on Friday.

Earlier, in a regulatory filing with the Stock Exchanges dated February 21, Zee Entertainment had said, “We would like to clarify that the above mentioned news items and rumours pertaining to accounting issues in the Company are incorrect, baseless and false.”

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