Exchanges make 45 new additions in the F&O following new eligibility norms

The changes will be effective November 29, first additions in the last 2.5 years

Stock exchanges on Wednesday announced the addition of 45 stocks to the new list of scrips eligible for trading in the futures and options (F&O) segment, including Zomato, Jio Financial, Paytm, Delhivery, and Avenue Supermarts.

 

The new entrants will be available for trading in the F&O segment from November 29, the exchanges said.

 

“The market lot, scheme of strikes, and quantity freeze limit of the aforementioned securities shall be informed to members on November 28, 2024, through a separate circular,” stated the National Stock Exchange (NSE).

 

The new entries also allow the benchmark indices to include new-age companies and firms that were listed in the last two years. Only scrips available for F&O trading are eligible for inclusion in the benchmark indices.

 

 

The market regulator, Securities and Exchange Board of India (Sebi), had approved the new eligibility criteria for F&O stock selection at its board meeting in June, with a detailed circular issued on August 30.

 

The previous revision of F&O eligibility conditions occurred in 2018, and no new stock had been added to the derivatives segment since January 2022.

 

The new additions also include three Adani Group firms and other recently listed companies such as Nykaa and PB Fintech.

 

The updated framework aims to attract more liquid and quality stocks to the derivatives segment. To achieve this, Sebi has prescribed higher thresholds for the market-wide position limit, median quarter sigma order size, and average daily delivery value (ADDV) in the cash market.

 

The new criteria also specify timelines and requirements for inclusion, deletion, cancellation of contracts, or re-entry into the F&O segment.

 

It has also introduced a ‘product success framework’ (PSF) for stock derivatives, similar to the framework for index derivatives.