Zee Entertainment shares were on the up on Tuesday after the National Stock Exchange (NSE) withdrew its decision to exclude the company from the futures and options segment (F&O).
What Happened? Days after the National Company Law Appellate Tribunal (NCLAT) decided to put a stay on admitting insolvency proceedings against Zee Entertainment, the NSE has issued a circular confirming that the company will be moved out of its ‘Insolvency and Bankruptcy Code (IBC)’ framework.
The exclusion of leading media and entertainment companies’ stock from the F&O segment means that there will be no fresh monthly contracts post the expiration of the February 2023 contracts. That said, existing March and April 2023 contracts will continue.
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The NSE in its circular has also advised members to load the updated contract file in the trading application before trading on February 28, 2023.
In case your wondering, the NSE removed Zee Entertainment from the F&O segment after the expiry of all the existing contracts.
The development followed a National Company Law Tribunal’s (NCLT) order admitting an insolvency plea filed by IndusInd Bank, one of Zee Group’s lenders, against the company and its subsidiary Siti Networks.
Zee was a party to the agreement as it was a guarantor of a loan worth ₹150 crore given by IndusInd Bank to Siti Networks.
Price Action: Zee Entertainment Ltd. shares were trading 6.37% higher at ₹194.40, soon after markets opened for trading on Tuesday.
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