The National Stock Exchange on Friday released a list of two stocks that will be excluded from the derivatives segment from the end of July.
Exide Industries Ltd. and Nuvama Wealth Management Ltd. will be excluded from F&O contracts with effect from July 29, 2026.
NSE said the existing unexpired contracts of expiry months May 2026, June 2026 and July 2026 would continue to be available for trading till their respective expiries, and new strikes would also be introduced in the existing contract months.
"Accordingly, no contracts shall be available for trading in the above-mentioned securities with effect from July 29, 2026," the circular said.
Traders will not be able to create new positions in these stocks in the F&O segment after the effective date. Investors will only be able to trade them in the cash market. This exclusion is typically initiated by stock exchanges to manage risk and enhance market efficiency.
ALSO READ: Colgate Q4 Results: Profit Flat As Margin Shrinks, Revenue Up 7%; Dividend Of Rs 24 Declared
SEBI, the market regulator, is responsible for making eligibility criteria for stocks in the derivatives segment, leading to this exclusion. Notably, securities are included and excluded under the F&O segment in accordance with the rules amended by the SEBI in August 2024.
Under the revised rules, the median quarter sigma order size for stocks was increased from Rs 25 lakh to Rs 75 lakh. MQSOS, a metric that measures a stock's liquidity, now requires a higher threshold, making it more difficult for stocks to be manipulated.
Additionally, the minimum market-wide position limit was tripled from Rs 500 crore to Rs 1,500 crore, and the minimum average daily delivery value has been raised 3.5 times from Rs 10 crore to Rs 35 crore.
Stocks that meet these revised criteria based on their performance in the cash market over a rolling six-month period are eligible for entry into the derivatives segment. Conversely, stocks that fail to meet the criteria for three consecutive months will be removed from the derivatives segment, although existing contracts will remain valid until their expiry.
Once a stock is removed from the derivatives segment, it cannot be reintroduced for a year from the date it was last traded in this segment.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.