NSE Drops Exide Industries and Nuvama Wealth from F&O Segment

National Stock Exchange Excludes Exide Industries and Nuvama Wealth Management from Futures & Options Contracts

The National Stock Exchange (NSE) announced on Friday the exclusion of Futures & Options (F&O) contracts on Exide Industries Limited and Nuvama Wealth Management Limited, following revised eligibility norms issued by market regulator Securities and Exchange Board of India (SEBI).

As per the exchange's circular, no new expiry month contracts will be introduced for the two securities after the current series expires. Existing contracts for May, June, and July 2026 will, however, remain available for trading until their respective expiry dates. The circular noted that the existing unexpired contracts of expiry months May 2026, June 2026, and July 2026 would continue to be available for trading till their respective expiry, and new strikes would also be introduced in the existing contract months. Accordingly, no contracts shall be available for trading in the above-mentioned securities with effect from July 29, 2026.

This move aligns with SEBI's August 2024 framework governing stock eligibility in the derivatives segment. According to the exchange, fresh strike prices may continue to be added for the remaining active contract months, but no new contracts beyond July 2026 will be launched.

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Eligibility Criteria for F&O Stocks

SEBI had issued revised eligibility norms for stocks to enter or remain in the F&O segment in August 2024. The circular prescribed that a stock should be among the top 500 by average market cap and traded value over six months. The median quarter-sigma order size (MQSOS) threshold must be Rs 75 lakh, the market-wide position limit (MWPL) of Rs 1,500 crore, and the average daily delivery value (ADDV) to Rs 35 crore. Any F&O stock that fails any of the criteria is out of the list, though eligibility on at least one exchange suffices.

Product Success Framework Extension

SEBI has extended the Product Success Framework to stock derivatives, adding participation, liquidity, and activity thresholds, reviewed monthly. Once a stock is excluded from the F&O list, it cannot be considered for re-inclusion for a period of one year. Although, a stock that is dropped from derivatives trading may become eligible once again, it is required to fulfill the key eligibility criteria for six consecutive months to be reintroduced for derivatives trading.

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SEBI's Aim

SEBI tightened norms with an aim to curb manipulation by filtering out stocks with low delivery volumes or smaller market capitalisation, which are more vulnerable to price rigging. The tighter thresholds create deterrents for operators seeking to exploit illiquid shares. Additionally, extending the Product Success Framework to stock derivatives helps prevent concentration risks, reducing the chances of a handful of brokers gaming the system.

Comparison of SEBI's Eligibility Criteria

Note: The comparison table highlights the key eligibility criteria for F&O stocks prescribed by SEBI.