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

NSE To Exclude 34 Stocks From F&O Trading

The National Stock Exchange said it will exclude 34 securities from the futures and options trading as these were found to be ineligible based on its selection criteria.

No new contracts linked to these stocks will be issued but existing April, May and June contracts will be available for trading till their respective expiry, according to a circular on the website of India’s largest bourse. None of the 34 securities will be available for trading from June 28.

“As per the enhanced criteria, these stocks don’t fulfil the criteria,” said Chandan Taparia, derivatives and technical analyst at Motilal Oswal Securities. “Most of these stocks have not performed recently. Since no fresh contracts will be available for July, there could be liquidation pressure.”

The stocks to be excluded are:

  1. Ajanta Pharma
  2. Allahabad Bank
  3. BEML
  4. Canfin Homes
  5. CEAT
  6. CG Power
  7. Chennai Petro
  8. DCB Bank
  9. Godfrey Phillips
  10. Godrej Industries
  11. Gujarat State Fertiliser
  12. IDFC
  13. IFCI
  14. India Cements
  15. Indian Bank
  16. Infibeam
  17. IRB Infra
  18. Jet Airways
  19. Jain Irrigation
  20. Kaveri Seed
  21. Karnataka Bank
  22. MRPL
  23. NHPC
  24. Oriental Bank
  25. PC Jeweller
  26. Repco Home
  27. Reliance Power
  28. South Indian Bank
  29. Suzlon
  30. Syndicate Bank
  31. Tata Communications
  32. TV18 Broadcast
  33. VGuard Industries
  34. Wockhardt

The move is line with the exchange’s April 2018 circular that said it would review framework for stocks in the derivatives segment after one year. Only the stocks that meet the eligibility criteria will remain.

The NSE’s enhanced eligibility criteria for selection of securities in derivatives segment include:

  • Stock should be among the top 500 companies in terms of daily average turnover.
  • Market-wide position limit should not be less than Rs 500 crore.
  • Over the last six months, a stock’s median quarter sigma order size by value—required to cause a one-quarter standard deviation change in the stock price—should not be Rs 25 lakh.
  • Average daily turnover in cash should not be less than Rs 10 crore in the previous six months son on a rolling basis.