NSE withdraws decision to drop Zee Entertainment from F&O segment
In a circular on Monday, NSE said it has withdrawn its previous decision, whereby it had excluded Zee Entertainment from the F&O segment.
The National Stock Exchange (NSE) on Monday said it would include Zee Entertainment Enterprises Ltd (ZEEL) back into the futures and options segment.
This comes after the National Company Law Appellate Tribunal (NCLAT) stayed the insolvency proceeding against Zee Entertainment on Friday.
The matter pertains to a default of Rs 89 crore by Essel Group's multisystem operator arm Siti Networks claimed by IndusInd Bank, for which ZEEL was a guarantor.
The NCLAT order is a major reprieve for ZEEL, which is merging with rival Culver Max Entertainment, formerly known as Sony Pictures Networks India.
In a circular on Monday, NSE said it has withdrawn its previous decision, whereby it had excluded Zee Entertainment from the F&O segment.
Further, besides existing contracts with expiry months of March and April, the futures and options contracts with May expiry will be made available for trading with effect from February 28, the exchange said.
Shares of Zee Entertainment declined more than 6% on Monday.
During the day, the stock slumped 10% to hit its 52-week low of Rs 176.60 per piece on the BSE.
On Thursday, NSE said that it would drop Zee Entertainment's stock from the F&O segment. It means that there would be no fresh monthly contracts after the expiry of the February 2023 contracts. However, existing March and April 2023 contracts will continue.
In addition, the exchange had said that a margin of 100% will be applicable on all existing derivative contracts starting February 27, 2023.
After the expiry of existing contracts, further surveillance actions of price band or gross settlement as applicable under the bankruptcy framework will be applicable from April 28, the exchange had said.
Edited by Suman Singh