The National Stock Exchange (NSE) has announced the upcoming exclusion of Exide Industries Ltd and Nuvama Wealth Management Ltd from its Futures and Options (F&O) segment. According to an official circular issued on May 22, 2026, no new contracts for these two securities will be available for trading starting July 29, 2026.
For traders currently holding positions, the NSE has clarified that existing unexpired contracts for May, June, and July 2026 will continue to be available for trading until their respective expiry dates. New strike prices will also be introduced for these existing contract months, providing continuity for current positions.
SEBI's Stricter F&O Eligibility Rules
This move by the NSE is a direct consequence of the revised eligibility criteria established by the Securities and Exchange Board of India (SEBI). In a circular dated August 30, 2024, SEBI overhauled the entry and exit norms for the derivatives segment, aiming to ensure that only high-quality stocks with sufficient market depth are allowed to trade in derivatives.
The market regulator significantly hiked the benchmarks required for stocks to remain in the F&O segment. Key changes include:
- The required market-wide position limit was tripled from Rs 500 crore to Rs 1,500 crore.
- The Average Daily Delivery Value (ADDV) requirement increased from Rs 10 crore to Rs 35 crore.
- The minimum median quarter sigma order size jumped from Rs 25 lakh to Rs 75 lakh.
Furthermore, SEBI introduced a Product Success Framework (PSF) designed to weed out stocks that lack sufficient monthly trading volume and open interest. Under this framework, stocks must demonstrate an average daily turnover (futures + options premium) of at least Rs 75 crore and an average daily notional open interest (futures + options notional) of at least Rs 500 crore during the review period.
Impact on Traders and Market Quality
The exclusion of Exide Industries and Nuvama Wealth Management underscores SEBI's commitment to tightening regulations and enhancing the quality of stocks traded in the derivatives market. While existing contracts will run their course, the halt on new expiry cycles for these securities marks a significant change for investors and traders in these specific stocks, aligning with the regulator's broader goal of maintaining market integrity and depth.