Starting Friday, February 28, 2025, a total of 16 stocks will no longer be part of the futures and options (F&O) segment and will be available for trading only in the cash market. This means that from this date onward, traders will not be able to engage in derivative contracts—such as futures or options—on these stocks.
The last day for trading F&O contracts on these stocks will be Thursday, February 27, 2025, which coincides with the monthly expiry of the February series. After this date, no new contracts will be available in the derivatives segment for these stocks. Investors and traders who hold open positions in these contracts should be aware of this transition as they make their trading decisions before the exclusion takes effect.
A total of 16 stocks are set to be removed from the futures and options (F&O) segment, meaning they will no longer be available for derivative trading. These stocks will continue to be traded in the cash market, but traders will not have the option to trade futures or options contracts on them once the exclusion takes effect.
The stocks being excluded from the derivatives segment include PVR Inox, United Breweries, Abbott India, Atul, Bata India, Can Fin Homes, Coromandel International, City Union Bank, Gujarat Narmada Valley Fertilizers and Chemicals (GNFC), Gujarat Gas, IndiaMart Intermesh, IPCA Laboratories, Dr. Lal Path Labs, Metropolis Healthcare, Navin Fluorine International, and Sun TV Network.
This decision is part of a broader regulatory move announced by the National Stock Exchange (NSE) on December 20, 2024. Exchanges periodically review and revise the list of stocks eligible for F&O trading based on factors such as liquidity, market participation, and regulatory compliance. The exclusion of these stocks from the derivatives segment is in line with such periodic reviews and adjustments.
In November, the National Stock Exchange (NSE) expanded the list of stocks available for trading in the futures and options (F&O) segment by adding 45 new companies. This move was aimed at increasing market participation and providing traders with more options in the derivatives segment.
As part of this expansion, F&O contracts for several well-known companies were introduced, allowing traders to engage in futures and options trading on these stocks. Some of the notable additions to the derivatives segment included Adani Energy, Adani Green, Angel One, Bank of India, BSE (Bombay Stock Exchange), CDSL (Central Depository Services Limited), CESC, Delhivery, Avenue Supermart (D-Mart), HUDCO (Housing and Urban Development Corporation), Jio Financial Services, JSW Energy, NHPC, FSN E-Commerce (Nykaa), Tata Elxsi, Yes Bank, Varun Beverages, and Zomato, among others.
These newly added contracts became available for trading on November 29, 2024. The inclusion of these stocks in the F&O segment allows traders to take positions in futures and options contracts, providing opportunities for hedging, speculation, and portfolio diversification.
As of now, the futures and options (F&O) segment includes derivative contracts on 227 individual securities, allowing traders to participate in futures and options trading on a wide range of stocks.
Meanwhile, Manappuram Finance has been placed under the F&O trade ban for today. This means that no fresh positions can be taken in its futures and options contracts while the ban remains in effect. The restriction is imposed when the aggregate open interest (OI) in a stock’s derivative contracts exceeds 95% of the market-wide position limit (MWPL) set by the exchange.
As of Tuesday, the MWPL for Manappuram Finance stood at 85%, indicating a high level of trader participation in its derivatives contracts. According to data reported by Trendlyne, the open interest (OI) for the stock was recorded at 43.5 million, reflecting a 10.7% decline from the previous trading session. The trade ban will remain in place until open interest falls below the prescribed threshold, after which normal trading activity in the F&O segment can resume.
In the futures and options (F&O) segment, a stock’s derivative contracts are placed under a trade ban when the open interest (OI) surpasses 95% of the market-wide position limit (MWPL). The MWPL is a threshold set by the exchange to prevent excessive speculation and maintain market stability.
When a stock enters the F&O ban period, traders are not allowed to initiate new positions in its futures and options contracts. However, they can still square off existing positions, meaning they can close their open trades but cannot add new ones. This restriction aims to curb excessive speculation and ensure orderly trading.
The trade ban is lifted only when the stock’s open interest (OI) drops below 80% of the MWPL. Once this condition is met, normal trading activity in its derivatives contracts resumes, allowing traders to take new positions in the F&O segment again.
Traders who engage in index trading do not face the issue of security-specific trade bans in the futures and options (F&O) segment. This is because trade bans apply only to individual stocks when their open interest (OI) exceeds the prescribed market-wide position limit (MWPL). Since index derivatives, such as Nifty 50 and Bank Nifty futures and options, are based on a basket of stocks rather than a single security, they are not subject to these restrictions.
Meanwhile, on Wednesday, the Indian equity markets remained closed for trading due to the observance of Maha Shivratri, a significant Hindu festival. As a result, no transactions took place in the cash or derivatives segments across major stock exchanges. Normal market operations are set to resume on the following trading day.