F&O Revision: NSE Excludes 2 Stocks Effective From January 31

Castrol India and Gland Pharma Removal

The National Stock Exchange (NSE) has declared that shares of Castrol India and Gland Pharma will no longer be a part of the Futures & Options (F&O) segment from January 31, 2025. This announcement comes after an earlier decision to include six new companies in the F&O segment starting on the same date. The affected companies, apart from Castrol India and Gland Pharma, were NBCC, Phoenix Mills, Solar Industries, and Torrent Power.

The unexpected removal of Castrol India and Gland Pharma signifies a shift in the NSE’s strategy towards reviewing the eligibility of stocks for derivative trading. While the remaining four companies are set to join the F&O segment as planned, this adjustment reflects NSE’s ongoing measures to streamline market operations.

Exclusion of 16 Securities from F&O Contracts

In a separate announcement, the NSE stated that futures and options contracts for 16 securities would no longer be introduced starting February 28, 2025. The impacted stocks include Abbott India, Atul Ltd, Bata India, Can Fin Homes, Coromandel International, City Union Bank, Gujarat Narmada Valley Fertilizers & Chemicals, IndiaMART InterMESH, Ipca Laboratories, Dr Lal PathLabs, Metropolis Healthcare, Navin Fluorine International, PVR INOX, Sun TV Network, and United Breweries.

This move is part of the NSE’s routine review process aimed at ensuring that only liquid and actively traded stocks remain in the derivatives market. It underscores the exchange’s commitment to maintaining market efficiency and safeguarding the interests of investors.

Conclusion

The NSE’s recent decisions highlight its focus on streamlining the F&O segment and enhancing market integrity. By excluding select stocks, the exchange aims to optimise market performance while fostering a healthy trading environment. These measures are indicative of its proactive approach to addressing market dynamics and investor needs.

NSE Revises Futures & Options Segment: Key Changes Announced

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.