Employees walk through the atrium of the National Stock Exchange of India Ltd. (NSE) building in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

A Fifth Of Stocks In NSE Derivatives Segment To Move To Physical Settlement From July

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The National Stock Exchange Ltd. today released a list of 46 stock futures that will be settled physically post Securities and Exchange Board of India’s decision to move to physical settlement in the derivatives segment in a phased manner.

Existing unexpired contracts for April, May and June will be available for trading in the cash settlement mode, the NSE said in a statement on its website. All new expiry month contracts issued in the above securities after expiry of April contracts, that is, July expiry onwards, shall be settled physically, the statement added. There are 208 stocks on the NSE.

The Bombay Stock Exchange also released a similar list, though stock futures trading on that exchange is marginal.

Here are the list of stocks that will be settled via physical settlement from July contract onwards in line with the SEBI guidelines,

  1. Adani Power Ltd.
  2. Ajanta Pharma Ltd.
  3. Allahabad Bank
  4. Andhra Bank
  5. Balrampur Chini Mills Ltd.
  6. Beml Ltd.
  7. Berger Paints (I) Ltd,
  8. Can Fin Homes Ltd.
  9. CG power And Industrial Solutions Ltd.
  10. Chennai Petroleum Corporation Ltd.
  11. DCB Bank Ltd.
  12. Godfrey Phillips India Ltd.
  13. Godrej Industries Ltd.
  14. Granules India Ltd.
  15. Gujarat State Fertilizers & Chemicals Ltd.
  16. Hexaware Technologies Ltd.
  17. Hindustan Construction Company Ltd.
  18. IDBI Bank Ltd.
  19. IFCI Ltd.
  20. Jaiprakash Associates Ltd.
  21. Just Dial Ltd.
  22. Kaveri Seed Company Ltd.
  23. Kpit Technologies Ltd.
  24. Mahanagar Gas Ltd.
  25. Mangalore Refinery And Petrochemicals Ltd.
  26. NHPC Ltd.
  27. NIIT Technologies Ltd.
  28. Oil India Ltd.
  29. Oracle Financial Services Software Ltd.
  30. Oriental Bank Of Commerce
  31. PTC India Ltd.
  32. PVR Ltd.
  33. Reliance Communications Ltd.
  34. Reliance Naval And Engineering Ltd.
  35. Reliance Power Ltd.
  36. Repco Home Finance Ltd.
  37. Siemens Ltd.
  38. SREI Infrastructure Finance Ltd.
  39. SRF Ltd.
  40. Syndicate Bank
  41. The Ramco Cements Ltd.
  42. Torrent Power Ltd.
  43. TV18 Broadcast Ltd.
  44. United Breweries Ltd.
  45. V-guard Industries Ltd.
  46. Wockhardt Ltd.

SEBI, in its March 28 board meeting, had approved a framework to strengthen the derivatives market. It had laid down a road map to align cash and derivative segments through physical settlement for all stock derivatives in a phased and calibrated manner.

The regulator tightened the selection criteria for introduction of stocks into the derivative segment. It increased the market wide position limit and median quarter-sigma order size from the current level of Rs 300 crore and Rs 10 lakh respectively to Rs 500 crore and Rs 25 lakh respectively. It also included an additional criterion – of average daily ‘deliverable’ value in the cash market of Rs 10 crore. These enhanced criteria would need to be met for a period of six months for a stock to remain in the derivative segment.

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