Zee Entertainment stock down by 10%

27 Feb 2023 , 01:46 AM

Despite receiving a stay from the appellate tribunal NCLAT, which halted the insolvency proceedings against Zee Entertainment Enterprises initiated last week, the company’s shares remain under pressure.

The counter touched an intraday low of Rs 176.65 on NSE. 

As per the reports, despite the NCLAT’s recent relief, it is improbable that the National Stock Exchange (NSE) will lift the ban on the new futures and options segment, and it is anticipated that the exchange will only contemplate resuming the contracts after a final ruling in its favour. Nevertheless, the existing ZEE F&O contracts for March and April will remain active for trading.

After the admission of a petition filed by IndusInd Bank against the Essel Group’s listed companies, specifically Zee Entertainment and Siti Network, NSE has removed ZEE from the F&O segment.

The subject of discussion pertains to Siti Networks, a sister company under the ownership of Essel Group, which has defaulted on payments amounting to Rs 83 crore. When Siti failed to make the payment, IndusInd Bank called upon the guarantee.

At around 1.41 PM, Zee Entertainment was trading 6.78% lower at Rs182.75, against the previous close of Rs195.55 on NSE.

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