The National Stock Exchange has excluded Zee Entertainment Enterprises Ltd. from the futures and options (F&O) segment following the bankruptcy board’s move to admit the media company for insolvency proceedings. After the expiration of existing contracts, therefore, further surveillance actions of price band/gross settlement as applicable under the bankruptcy framework will come into effect from April 28.
The National Company Law Tribunal on February 22 admitted an insolvency petition filed by IndusInd Bank against Essel Group’s listed companies viz. Zee Entertainment and Siti Networks. In its plea, IndusInd Bank claimed a default of Rs. 83.08 crore against the company. The move raised doubts over the impending merger of the media company with Sony. It also dampened sentiment for the stock on February 23. In December last year, the IDBI Bank too had filed an insolvency plea against Siti Networks.
Zee Entertainment’s managing director and CEO, Punit Goenka, assured investors that the proposed merger would happen.