Subhash Chandra resigned today as the chairman of the board of Zee Entertainment Enterprises with immediate effect. He will stay on as a non-executive director of the company.

According to LiveMint, in a stock market filing, the company said: “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.”

Chandra’s son, Punit Goenka, is the current managing director and chief executive officer of Zee Entertainment Enterprises. Chandra founded the company in 1992.

BloombergQuint reports: “Chandra-led Essel Group, the promoter of Zee Entertainment, sold 16.5 percent shareholding in the media major to financial investors in a second effort to raise funds to pay off debt.” The report says that according to a separate exchange filing, the company also appointed three new independent directors to replace two independent directors and one nominee director of Essel Group.