ZEE breaks 6-day losing streak, surges 7%, as NSE issues fresh F&O contracts

Shares of Zee Entertainment Enterprises swung back to February 28 with over 7 percent gain after the National Stock Exchange decided to lift its surveillance on the company.

The exchange issued fresh derivatives contracts for May starting today, in addition to the already valid contracts for March and April expiry.

At 10.16am, shares of Zee Entertainment Enterprises were trading at Rs 195.80 on the NSE, up 7.02 percent. The stock had tested an intraday high of Rs 197.80.

The stock had been trading in the red for the last six sessions and tanked 18.56 percent so far this year. The exchange had last week declared that it would not issue any new month futures and options (F&O) contracts once the contracts for February expired. It had also said that the margin requirement would be 100 percent for all derivative contracts.

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This decision was made after the stock took a hit following the National Company Law Tribunal’s acceptance of IndusInd Bank’s insolvency petition against the media company, and initiation of corporate insolvency proceedings against Zee Entertainment.

However, on February 23, Zee Entertainment filed an appeal with the National Company Law Appellate Tribunal (NCLAT) against the order issued by the NCLT and received a stay order. This prompted the NSE to reverse its earlier order and issue fresh derivatives contracts.