NSE
to stop issuance of new futures and options contracts for ZEE
The National Stock Exchange
(NSE) said that it will stop the issuance of new futures and options contracts
for Zee Entertainment after the expiration of the existing contract, according
to a report in Money control.
In an announcement dated
April 16, the NSE stated that contracts for new expiry months for Zee
Entertainment will not be issued once the existing contract months expire.
According to the Money control report,
the NSE, in its circular, said that Zee has been excluded from futures and
options contracts based on "SEBI Circular Ref. No:
SEBI/HO/MRD2/PoD-2/CIR/P/2023/171 dt. October 16, 2023 and chapter 3.5 of
Exchange circular No. NSE/FAOP/57264 dated June 23, 2023 regarding eligibility
criteria of stocks. Accordingly, no contracts shall be available for trading in
the above-mentioned security with effect from June 28 2024".
The current unexpired
contracts for Zee in April, May, and June 2024 will remain open for trading,
and new strike options will be introduced within these existing contract
months, the report stated.
On Tuesday, the NSE
announced that Zee Entertainment contracts will not be available for trading in
the futures and options (F&O) segment starting June 28.
In February last year, the
NSE removed Zee from the F&O segment after the National Company Law
Tribunal (NCLT) admitted an insolvency plea filed by IndusInd Bank against the
company. However, the NSE subsequently reversed this action after the NCLT
provided interim relief to the media firm by staying the bankruptcy proceedings
against it.
Zee Entertainment's shares
have almost halved since January following the collapse of its $10-billion
merger with Sony Pictures Networks India.
www.business-standard.com
dt. 17.04.2024