The Securities and Exchange Board of India has directed brokers to square off their open open interest positions they hold for Vijay Mallya and the six former officials of United Spirits.
Market regulator last week banned Vijay Mallya and others from the market in a case related to alleged fund diversions from United Spirits.
The six persons are Ashok Capoor, Sowmiyanarayanan, PA Murali, SN Prasad, Paramjit Singh Gill and Ainapur SR.
Open interest drops“The trading members are advised to square off existing open positions in the futures and options segment, if any, for the persons/entities mentioned in the above order and also ensure that no fresh positions are created for the said persons/entities,” an NSE circular said quoting the SEBI e-mail directive.
The United Spirits February futures on Thursday shed 42,000 shares (1.65 per cent) in open interest. The underlying stock closed 0.5 per cent lower at ₹2,278.6 on the NSE while the futures ended at ₹2,285.5. Options are not very active. February 2,300 and 2,400 call options have higher open positions.
However, Vijay Mallya had hit out at SEBI for barring him from securities market and termed the charges as “baseless.”
Vijay Mallya-led United Breweries Holding Ltd had said it is reviewing SEBI’s order and will take “appropriate action.”
“The company is reviewing the SEBI order and is in the process of seeking legal advice and take appropriate action in the said matter,” UBHL said in a notice to the exchanges.