Just a few hours after IndusInd Bank filed an insolvency plea against Zee Entertainment Enterprises Ltd. (ZEEL) in National Company Law Tribunal (NCLT), the National Stock Exchange (NSE) has also resorted to action. As per updates, the NSE has removed Zee Entertainment from the futures and options (F&O) segment.
According to a circular issued by NSE, since Zee Entertainment has been admitted by the bankruptcy board for insolvency proceedings, no fresh month contracts will be issued on expiration of February 2023 ones.
It reads, “ZEEL 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 and April expiries shall continue.”
In addition to this, as per NSE, a margin of 100 per cent will be levied on all existing contracts on a T+2 basis for all new positions that are created from February 27. This would also be done on all existing open positions as on Friday – February 24, 2023.
The NSE circular also said that no F&O will be available for trading in the underlying ZEEL from April 28, 2023 owards. It added that after the expiry of existing contracts, further surveillance actions of price band/gross settlement as applicable under the IBC framework will come into effect from April 28.