National Stock Exchange (NSE) on Thursday removed Zee Entertainment Enterprises Ltd from the futures & options (F&O) segment. Zee has been shortlisted under Insolvency and Bankruptcy Code (IBC) framework.
“No fresh month contracts will be issued on expiration of February 2023 contracts. All existing contracts with March 2023 and April 2023 expiries shall continue,” NSE in a statement on Thursday.
“Further, a margin of 100% shall be levied on all existing derivative contracts w.e.f. T+2 day i.e., for all new positions created from Feb 27, 2023 onwards and on all existing open positions as on Feb 24, 2023,” added NSE.
No futures and options shall be available for trading in the underlying ZEEL from April 28, 2023, onwards. After the expiry of existing contracts, further surveillance actions of price band/Gross settlement etc. as under the IBC framework shall be applicable w.e.f April 28, 2023.
On Wednesday, National Company Law Tribunal admitted an IndusInd Bank plea for insolvency proceedings against the media firm. The matter pertains to a default of Rs 89 crore by Zee Group’s multisystem operator arm Siti Networks claimed by IndusInd Bank, for which ZEEL was a guarantor. The NCLT has admitted the plea at a time when ZEEL is in advanced stages of merging with Sony in one of the biggest deals in the media and entertainment sector.
The stock tanked 14.23 per cent to Rs 176.60 — its 52-week low — during the day on the BSE. However, it later recovered most of the early lost ground and ended 3.47 per cent lower at Rs 198.75 apiece.
Last month, NSE decided to remove Firstsource Solutions and Torrent Power from its futures & options (F&O) segment.