Capital market regulator Securities and Exchange Board of India on Wednesday dropped charges of non-redressal of investor complaints and failure to register with the regulator's online complaint redressal system against Zee Entertainment.
The regulator said violations could not be established against the company. Zee Entertainment Enterprises Ltd or Zee is formerly known as ETC Networks Ltd.
It was alleged that Zee had neither obtained the authentication of SCORES, Sebi's online complaint redressal system, as advised by the regulator nor redressed the grievance of investor.
Sebi in its order said, "the allegations of non activation of SCORES, failure to submit ATR and non redressal of investor grievance, does not stand established and accordingly ETC /Zee is not liable for penalty."
The Securities and Exchange Board of India concluded that the ‘alleged violations do not stand established against the ETC/Zee. Therefore, the matter is disposed off accordingly.’
According to Sebi, Zee had obtained the SCORES authentication in July, 2011 itself, before the regulator issued directives in August 2012.
"Further, in respect of complainant's grievance of non-receipt of refund in public/rights issue, Zee submitted that neither the ETC nor the Zee had made any public/rights issue in the past over a decade and therefore, the question of refund to any shareholder does not arise.
"It is noted that no proof is available on records to rebut such contention of Zee," Sebi said.
