NSE To Remove Exide Industries, Nuvama Wealth From F&O Segment From July 29

The National Stock Exchange (NSE) is set to exclude futures and options (F&O) contracts of Exide Industries and Nuvama Wealth Management from the derivatives segment from July 29, 2026, after the two stocks failed to meet new revised eligibility norms for the derivatives segment.

In a circular issued on May 22, the exchange said that “the contracts for new expiry months” in the two securities “will not be issued on expiry of existing contract months.”

The decision follows Securities and Exchange Board of India’s (Sebi) August 2024 rules that tightened the eligibility criteria for stocks in the F&O segment.

However, existing contracts will continue till expiry. The NSE clarified 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,” the circular added.

This means traders can continue to trade existing contracts till their expiry dates, but no fresh expiry series will be launched after July 2026.

Sebi had tightened the entry and exit norms for stocks in the F&O segment in August 2024 to improve market quality and reduce the scope for price manipulation in relatively illiquid stocks.

Under the revised framework, stocks must meet stricter liquidity and market-depth conditions to remain eligible for derivatives trading. The regulator raised the median quarter-sigma order size  threshold to Rs 75 lakh from Rs 25 lakh earlier. It also increased the market-wide position limit requirement to Rs 1,500 crore from Rs 500 crore and the average daily delivery value threshold to Rs 35 crore from Rs 10 crore.

Further, Sebi extended the Product Success Framework (PSF) to stock derivatives. The framework requires contracts to maintain minimum trading activity and open interest levels on an ongoing basis.

Under these rules, stocks that do not meet Sebi’s criteria can be removed from the F&O segment. Once a stock is removed, it cannot return to the derivatives segment for at least one year.