SEBI Uncovers $241 Million Accounting Issue At Zee: Report

As part of its investigation into the Zee founders, the Securities and Exchange Board of India, or Sebi, found that about 20 billion rupees ($241 million) may have been diverted from the company.

The market regulator has found a hole of more than $240 million in the accounts of Zee Entertainment Enterprises Ltd., dealing another blow to the embattled media firm less than a month after its merger with Sony Group Corp's local unit collapsed. Zee shares fell.

As part of its investigation into the Zee founders, the Securities and Exchange Board of India, or Sebi, found that about 20 billion rupees ($241 million) may have been diverted from the company, said people familiar with the matter who did not want to be identified as the information is not public yet. That's roughly ten times of what was initially estimated by Sebi investigators, the people said.

Zee shares slid as much as 15% in Mumbai trading, the most in a month, before paring some of the losses. Benchmark S&P BSE Sensex was marginally up, according to data compiled by Bloomberg.