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An Indian tribunal on Monday lifted the ban on Zee Entertainment top boss  to hold board positions in any of the four Zee Group companies, paving the way for him to resume the proposed role in the planned merger between ZEE and the Indian unit of Japan's Sony Group.

Shares of Zee Entertainment rose as much as 3.7% post the order.

India markets regulator, Securities Exchange Board of India (SEBI), in August, had barred Goenka and Zee Group Chairman Subhash Chandra from holding positions in Zee company boards alleging they were actively involved in diverting company funds to the group's other listed entities and firms related to founding shareholders.

The Securities Appellate Tribunal's (SAT) verdict on Chandra was not announced by 1147 IST.

Zee Group had announced a merger of ZEE with Sony's Indian business in 2021, but the move was delayed due to an interim SEBI order which had restrained Goenka from directorships of any listed companies.

In August, India's company tribunal had approved the merger creating a $10 billion company.

SAT said on Monday Goenka will cooperate with any further investigation by the regulator. (This story has been corrected to fix the statement attribution to SAT, not Zee, in paragraph 7)