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NSE excludes PVR Inox, Metropolis, Bata and 13 other securities from F&O segment
3 min read | Updated on December 21, 2024, 19:10 IST
SUMMARY
NSE on Friday excluded 16 stocks from the F&O segment as they did not meet the new eligibility criteria set out by the SEBI on August 30, 2024.
The NSE stated that it would not issue an F&O contract for the 16 securities from February 28, 2025
The National Stock Exchange (NSE) on Friday announced the exclusion of 16 stocks, including PVR Inox, Metropolis and Bata, among others, from the futures and options (F&O) segment.
“Members are requested to note that the contracts for new expiry months in the following securities will not be issued on expiry of existing contract months,” the bourse had said in a circular dated December 20, 2024.
The NSE further stated that it would not issue an F&O contract for the securities from February 28, 2025.
Here is a list of the affected securities:
- Abbott India Ltd
- Atul Ltd
- Bata India Ltd
- Can Fin Homes Ltd
- Coromandel International Ltd
- City Union Bank
- Gujarat Narmada Valley Fertilizers and Chemicals Ltd
- Gujarat Gas Ltd
- Indiamart Intermesh Ltd
- IPCA Laboratories Ltd
- Dr. Lal Path Labs Ltd
- Metropolis Healthcare Ltd
- Navin Fluorine International Ltd
- PVR Inox Ltd
- Sun TV Network Ltd
- United Breweries Ltd
“Accordingly, no contracts shall be available for trading in the above-mentioned securities with effect from February 28, 2025. However, the existing unexpired contracts of expiry months December 2024, January 2025 and February 2025 would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months,” NSE said.
Why is NSE excluding 16 securities from the F&O segment?
On August 30, 2024, the market watchdog SEBI announced a formal revision in the entry-exit criteria of stocks in the F&O segment.
A notable change was the increase in the median quarter sigma order size (MQSOQ), a metric measuring a share’s liquidity, to ₹75 lakh from the previous ₹25 lakh.
The market-wide position limit (MWPL) was revised to ₹1,500 crore from ₹500 crore.
It also increased a share’s Average Daily Delivery Value (ADDV) from ₹10 crore to 35 crore.
Stocks that fail to meet the eligibility criteria for three months or six months on a rolling basis, will be excluded from the F&O segment, although existing contracts will remain valid until expiry, as with the aforementioned securities.
Once an existing stock is removed from the derivatives segment, it shall not be reconsidered for re-entry for one year.
November expansion of the F&O segment
In November, the NSE expanded the derevatives segment by introducing F&O contracts for 45 additional securities, including LIC, BSE Ltd, Adani Energy, Bank of India, JSW Energy, Jio Financial Services, Zomato, DMart and Paytm, among others.
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