Shares of Zee Entertainment Enterprises Ltd jumped over 8% in morning trade on Tuesday after the National Stock Exchange (NSE) said it would include the company back into the futures and options (F&O) segment.
At the NSE, the share rallied 8.11 % to Rs 197.80. The stock climbed 8% to Rs 197.75 on the BSE.
This comes after the National Company Law Appellate Tribunal (NCLAT) stayed insolvency proceeding against Zee Entertainment on Friday.
The matter pertains to a default of Rs 89 crore by Essel Group’s multisystem operator arm Siti Networks, claimed by IndusInd Bank, for which Zee Entertainment was a guarantor.
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The NCLAT order is a major reprieve for Zee Entertainment, which is merging with rival Culver Max Entertainment, formerly known as Sony Pictures Networks India.
In a circular on Monday, the NSE said it has withdrawn its previous decision, whereby it had excluded Zee Entertainment from the F&O segment. Further, in addition to existing contracts with expiry months of March and April, the F&O contracts with May expiry will be made available for trading with effect from February 28, the exchange said.
Shares of Zee Entertainment had declined more than 6% on Monday.
The stock ended 6.65 % lower at Rs 182.55 apiece on the NSE.
On the BSE, it settled at Rs 183 each share, lower by 6.44 %. During the day, the stock slumped 10% to hit an intra-day low of Rs 176.60 per piece.
Edited by Swetha Kannan