Container Corporation to exit F&O segment effective September 29: NSE

economictimes.indiatimes.com:

Container Corporation of India (CONCOR) will be excluded from the derivatives segment, effective September 29, NSE said in a circular late Friday. The existing contracts of expiry months July, August and September would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months, the exchange said. “However, no contracts will be available for trading in the security with effect from September 29,” NSE said.

On Friday, shares of CONCOR ended 1.5% higher at Rs 688.80 on the NSE. The July futures contract of the stock settled at Rs 689.75, and open interest declined 1.5% to 4.9 million. Year-to-date, the stock has fallen nearly 7%, when the benchmark Nifty 50 has given 8% positive returns.

Last week, the Delhi Bench of the National Company Law Tribunal had admitted an insolvency petition against the government-owned logistics company by an operational creditor Roadwings International Pvt Ltd. Roadwings International said CONCOR defaulted on dues worth over Rs 87 crore. However, reports said that the National Company Law Appellate Tribunal has stayed the insolvency proceedings against the company.

News around insolvency comes at a time when the government is preparing for divestment of stake in CONCOR to privatise the company. Reports said the government has already prepared the document to invite expressions of interest for a 30.8% stake in the logistics services provider.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)