From Abbott India, PVR Inox To Gujarat Gas And More: NSE To Exclude 16 Securities From F&O Effective Feb. 28
The exclusion of securities like Abbott India Ltd. and PVR Inox Ltd. from the F&O market will be effective Feb. 28, 2025, following revised guidelines from SEBI to increase liquidity standards.
The National Stock Exchange of India Ltd. on Friday announced the exclusion of 16 securities from the F&O market, effective Feb. 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, according to an exchange filing.
Abbott India Ltd., Atul Ltd., Bata India Ltd., Can Fin Homes Ltd., Coromandel International Ltd., City Union Bank Ltd., Gujarat Narmada Valley Fertilisers 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., and Sun TV Network Ltd. are the 16 securities to be excluded from the F&O market effective Feb. 28.
Accordingly, no contracts shall be available for trading in the above-mentioned securities with effect from Feb. 28, 2025, the filing said.
On Aug. 30, the Securities and Exchange Board of India came up with several changes to its criteria for the inclusion and removal of stocks from the derivatives segment.
Under the revised rules, the median quarter sigma order size, or MQSOS, for stocks has been 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, or MWPL, has been 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 crores to Rs 35 crore.
Stocks that meet these revised criteria based on their performance in the cash market over a rolling six-month period will be 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.
