The order follows an investigation launched after irregularities involving missing title deeds of ZEEL's properties came to light.The Securities and Exchange Board of India (SEBI) has barred Zee Entertainment Enterprises Ltd (ZEEL) founder & chairman emeritus Subhash Chandra and CEO Punit Goenka from accessing the securities market for one year after finding that the company’s immovable property was pledged without authorisation to secure loans raised by promoter-linked entities.Sebi has also imposed penalties of Rs 60 lakh on Subhash Chandra, Rs 58 lakh on Punit Goenka and Rs 30 lakh on ZEEL. In addition, ZEEL has been restrained from accessing the securities market for two months.In its final order issued on Friday, SEBI held that land parcels owned by ZEEL in Hyderabad were used as collateral for loans availed by Essel Group entities without the knowledge or approval of the company’s board of directors or audit committee. The transactions were also not disclosed to shareholders or investors, constituting a serious breach of corporate governance and fiduciary responsibilities.The violations relate to transactions carried out in 2018. Privately held firms of the promoter group had taken loan from the lenders. When the lender asked for additional security cover, title deeds were handed over to the lender. The pledge was allegedly created without board authorisation and remained undisclosed, depriving shareholders of material information regarding the company’s assets.Assets can’t be used for promoter firmsSEBI observed that the assets of a listed company are held in trust for all shareholders and cannot be deployed for the benefit of promoter-controlled entities without due corporate approvals and governance safeguards. It held that the unauthorised encumbrance of the company’s assets constituted a fraudulent device that prejudiced investor interests and violated the provisions of the SEBI Act and the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.Also in Explained | What led to the collapse of mega Sony-Zee merger plan?The order follows an investigation launched after irregularities involving missing title deeds of ZEEL’s properties came to light. During the probe, SEBI found that the security created over the Hyderabad land was intended to facilitate borrowing by promoter-linked entities and was concealed from the board, audit committee and shareholders.The latest action follows a series of regulatory scrutiny of Zee Entertainment and its promoters. SEBI has investigated multiple allegations relating to diversion of funds, related-party transactions and corporate governance lapses at the broadcaster over the past few years. While some proceedings resulted in interim and confirmatory orders, others continue under separate legal processes.Story continues below this adSEBI said the order reaffirms its commitment to enforcing high standards of corporate governance at listed companies and holding promoters and senior executives accountable for the misuse of corporate assets.It also underscores the regulator’s view that investors are entitled to timely and complete disclosures of transactions involving material company assets, particularly where the interests of promoters conflict with those of minority shareholders.George Mathew is an Associate Editor with The Indian Express, based in Mumbai. A veteran of financial journalism with nearly three decades of experience, he is one of the country’s most authoritative voices on banking, regulation, and the corporate sector. Expertise & Focus Areas Mathew’s reporting covers the nerve center of India’s economy. His specialized beats include: The Reserve Bank of India (RBI): He has tracked the central bank's policy evolution through the tenures of multiple Governors, offering deep insights into monetary policy, repo rates, and banking regulation. Banking & Insurance: Extensive coverage of public and private sector banks, non-performing assets (NPAs), and key legislative reforms like the Insurance Amendment Bills. Corporate Affairs: Mathew frequently breaks major stories related to India's largest conglomerates, with a specific focus on the Tata Group, documenting boardroom shifts and strategic decisions. Financial Markets: Reporting on the complexities of Foreign Portfolio Investors (FPIs), IPOs, and currency fluctuations. Authoritativeness & Insight With a career dating back to the late 1990s, Mathew possesses a rare institutional memory of India’s financial liberalization and market crises. His work is not limited to daily news; he frequently contributes to the "Explained" section, where he decodes complex financial legislations and market trends for a broader audience. His rigorous reporting has also been featured in scholarly platforms like the Economic and Political Weekly (EPW). Find all stories by George Mathew here ... Read More Tags:Explained EconomicsExpress Explained