MUMBAI:  Zee Entertainment Enterprise Ltd’s (ZEEL) promoter Essel Group pledged 10.71 per cent shareholding in the media company with Russia’s VTB Capital Plc.

According to a disclosure made by VTB Capital to the stock exchanges, the encumbrance on 10.2 crore shares of Zee owned by Essel Media Ventures Ltd was created pursuant to a loan agreement executed on 4 September 2017.

As per Sebi’s new rules related to pledging which came into effect on 1 October, disclosure of detailed reasons for encumbrance if the shares pledged equal or exceed 50 per cent of the total promoter holding (including shares owned by persons acting in concert) or 20 per cent of the total share capital of the company is needed.

As of 30 June 2019, the promoters were holding about 35.79 per cent of the company. Subhash Chandra-led Essel Group has been working to sell assets due to high debt crisis. Essel Group agreed to sell up to 11 per cent stake for Rs 4,224 crore in Zee to Invesco Oppenheimer to repay lenders back in August.