The shares on the BSE lost up to 33 per cent during the intra-day trade but closed 26 per cent lower at Rs.319.35.
The shake up in Zee shares occurred after the report claimed that the SFIO was probing a company, Nityank Infrapower, for deposits of over Rs 3,000 crore made just after demonetisation that was announced on November 8, 2016.
It also claimed that Nityak Infrapower and a group of alleged shell firms had carried out financial transactions that involved a few companies associated with the Subhash Chandra-led Essel Group between 2015 and 2017.
Zee Entertainment Enterprises shares fell nearly 31 per cent to Rs 299.92 per share on the National Stock Exchange. It was the worst day for the stock for a single day fall since 1999.
The media report also said that Nityank also played a crucial role in a large business deal between the Videocon and Essel groups in November, 2016.
Essel maintains that Nityank is an independent firm, while Videocon alleges otherwise.