The National Stock Exchange (NSE) has announced the inclusion of 6 new stocks in the Futures and Options (F&O) segment starting January 31, 2025. The stocks added to the derivatives list are Castrol India, Gland Pharma, NBCC, Phoenix, Solar Industries India, and Torrent Power.

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This move follows strict adherence to criteria laid out by the Securities and Exchange Board of India (SEBI) and has received regulatory approval.

Market lot and strike details to follow

The NSE has clarified that details regarding market lot sizes and strike schemes for these securities will be shared with members on January 30, 2025. These specifics, along with applicable quantity freeze limits, will be made available in the contract file and implemented from the trading start date.

Exclusion of 16 stocks effective February 28

While six stocks are set to join the F&O list, the NSE has simultaneously decided to remove 16 counters from the segment. These include notable names such as PVR Inox, United Breweries, Abbott India, Atul, Bata India, and City Union Bank. Contracts for these stocks will not be available for trading after February 28, 2025.

Impact on trading volumes and liquidity

Market analysts suggest that inclusion in the derivatives segment often boosts liquidity and trading volumes for stocks. The derivatives market also aids in better price discovery, which could attract heightened investor interest in these newly included securities.

Recent additions to NSE’s derivatives segment

This development follows NSE’s earlier initiative in November 2024, where 45 stocks, including prominent names such as Life Insurance Corporation, Jio Financial Services, and Adani Green Energy, were introduced to the F&O segment. These additions underline the exchange's focus on expanding its derivatives offerings in line with market trends and participant needs.

A growing derivatives market

NSE MD and CEO Ashish Chauhan remarked that these inclusions reflect improved liquidity and size thresholds of the stocks. The evolving derivatives market continues to create opportunities for traders and investors to diversify strategies.

Stay tuned for further updates as NSE finalizes specifics for the January 31 rollout.