New Delhi, November 25: Subhash Chandra, the founder of Zee, has stepped down as the Chairman of the Zee Entertainment Enterprises' board with immediate effect on Monday. He will continue to be the non-executive director of the company. The media baron decided to resign to comply with the SEBI (Securities and Exchange Board of India) rules which mandates that chairman of the company cannot be related to its Managing Director (MD) and Chief Executive Officer (CEO). Airtel and Reliance Jio to Fight For Zee Entertainment Stake.

"In light of the changes in shareholding, Mr Subhash Chandra has expressed his intention to resign as Chairman of the Board with immediate effect. The Board accepted his resignation and noted that this is in line with the requirements of Regulation 17 (lB) of SEBI Listing Regulations, which inter alia mandates that the Chairperson of the Board shall not be related to the Managing Director or the Chief Executive Officer of the Company," the company said in its stock market filing.

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Subhash Chandra and his son Punit Goenka will remain on the Zee Entertainment board as representatives of the Essel Group. Zee, regarded the pioneer of the television entertainment industry in the country, was launched by Subhash Chandra in 1992.

In September, Chandra-led Essel group had sold 11 percent stake in Zee Entertainment to Invesco-Oppenheimer fund for Rs 4,224 crore. Post-transaction, its promoters' stake in Zee has reduced to five percent.

(The above story first appeared on LatestLY on Nov 25, 2019 07:33 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).