MUMBAI: Zee Telefilms has clarified with the National Stock Exchange that media reports claiming that the company's promoter group had placed a part of its stake with a group of institutional investors, were false.
On Monday, the Zee Tele stock rose sharply amid rumours that the promoter group, led by chairman Subhash Chandra, had placed a part of its stake with institutional investors it had met to clarify doubts related to the implementation of the conditional access system in the country. The scrip vaulted 12 per cent at Rs 117 on the NSE on Monday and surged 12.3 per cent on the BSE at Rs 117 with delivery volumes adding up to 1.7m shares or 25 per cent of the total traded volume.
The NSE which wrote to the company to verify the reports, received an official reply from Zee Tele last evening, confirming that "There is no such placement of Zee shares by the promoter group. Therefore the news item is denied." 
As of June 30, ‘03, foreign institutional investors own 29 per cent in Zee Telefilms. The promoter group led by Subhash Chandra owns 50.5 per cent.