Subhash Chandra has resigned as board chairman of Zee Entertainment with immediate effect following the sale of Zee stakes by Chandra-led Essel Group last week. Essel Group sold 15 crore shares, or a 15.72 percent stake, via block trades to financial investors for Rs 4560 crore on November 21.
"In light of the changes in shareholding, Subhash Chandra has expressed his intention to resign as Chairman of the Board with immediate effect," Zee said in a regulatory filing, adding that the board has accepted the resignation.
Chandra's resignation is aimed at complying with the rule which mandates that the chairman can't be related to CEO and managing director of the company. Chandra's son Punit Goenka is currently MD and CEO.
The Zee Entertainment board has accepted Subhash Chandra's resignation and said in its release that he will continue as a non-executive director of the board.
The Zee board has also appointed six independent directors. All these new appointments will have to be approved by the shareholders.
Meanwhile, the Singapore government and Monetary Authority of Singapore have hiked their total holding in Zee Entertainment to 8.44 percent by acquiring shares through secondary market placement, according to a regulatory filing by the company.
GIC Pvt Ltd on account of Government of Singapore (GOS) and Monetary Authority of Singapore (MAS) acquired a total of 2.85 crore shares, amounting to 2.967 percent stake in ZEEL on November 21.