NEW DELHI: The Securities and Exchange Board of India (Sebi) has up to date the eligibility criteria for stocks within the Futures and Options (F&O) section to make sure that solely high-quality stocks with enough market depth can commerce on this section. The eligibility might be decided based mostly on the inventory’s efficiency within the money market over the previous six months on a rolling foundation.
Sebi may even take into account different components corresponding to surveillance considerations, ongoing investigations, or different administrative issues.
The regulator’s round mandates that the inventory’s Median Quarter Sigma Order Size (MQSOS) ought to now be at least Rs 75 lakh, up from Rs 25 lakh. Moreover, the Market Wide Position Limit (MWPL) has been raised to a minimal of Rs 1,500 crore from Rs 500 crore. The inventory’s Average Daily Delivery Value within the money market has additionally been considerably elevated to at least Rs 35 crore from Rs 10 crore.
Additionally, stocks within the F&O section that don’t meet the criteria for three months in a row on a rolling foundation might be eradicated, beneath the revised tips. Furthermore, as soon as these stocks are faraway from the F&O section, no new contracts might be issued for them and it’ll not be thought of for re-inclusion for one yr.
However, present unexpired contracts might be allowed to commerce till expiry.
Meanwhile, IIFL recognized 23 inventory that face the risk to be excluded from the F&O section based mostly on the up to date criteria. These stocks are Laurus Labs (open curiosity of Rs 1,166 crore) Ramco Cements (Rs 910 crore), Deepak Nitrite (Rs 695 crore), Atul Ltd (Rs 656 crore), Torrent Pharmaceuticals (Rs 652 crore), and Chambal Fertilizers (Rs 640 crore), Gujarat Gas, Coromandel International, Granules India, Sun TV Network, Syngene International, City Union Bank, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Can Fin Homes, Bata India, Dr. Lal PathLabs, Abbott India, United Breweries (UBL), IPCA Laboratories, Metropolis Healthcare, Indiamart Intermesh, Mahanagar Gas (MGL), and JK Cement.
Meanwhile, Zomato, Adani Green, Jio Financial, DMart, and Tata Technologies could also be thought of for inclusion within the F&O section.
Stocks that meet the eligibility criteria within the underlying money market of any inventory change might be allowed to commerce within the fairness derivatives section of all inventory exchanges. The by-product contracts might be settled by the clearing firms at a value calculated based mostly on the volume-weighted common value (VWAP) from the money section throughout all exchanges
Additionally, the market watchdog has launched a brand new framework referred to as the product success framework (PSF) particularly for single-stock derivatives.
At least 15 per cent of buying and selling members energetic in all inventory derivatives, or 200 buying and selling members (whichever is decrease), should have traded in any by-product contract on the inventory being reviewed, on common, every month through the evaluate interval, in line with the PSF. Also, buying and selling exercise should be noticed on a minimal of 75 per cent of the buying and selling days inside the evaluate interval.
The inventory beneath evaluate ought to preserve a mean every day turnover (combining futures and choices premium) of at least Rs 75 crore, together with a mean every day notional open curiosity (futures and choices mixed) of at least Rs 500 crore through the evaluate interval.
Sebi may even take into account different components corresponding to surveillance considerations, ongoing investigations, or different administrative issues.
The regulator’s round mandates that the inventory’s Median Quarter Sigma Order Size (MQSOS) ought to now be at least Rs 75 lakh, up from Rs 25 lakh. Moreover, the Market Wide Position Limit (MWPL) has been raised to a minimal of Rs 1,500 crore from Rs 500 crore. The inventory’s Average Daily Delivery Value within the money market has additionally been considerably elevated to at least Rs 35 crore from Rs 10 crore.
Additionally, stocks within the F&O section that don’t meet the criteria for three months in a row on a rolling foundation might be eradicated, beneath the revised tips. Furthermore, as soon as these stocks are faraway from the F&O section, no new contracts might be issued for them and it’ll not be thought of for re-inclusion for one yr.
However, present unexpired contracts might be allowed to commerce till expiry.
Meanwhile, IIFL recognized 23 inventory that face the risk to be excluded from the F&O section based mostly on the up to date criteria. These stocks are Laurus Labs (open curiosity of Rs 1,166 crore) Ramco Cements (Rs 910 crore), Deepak Nitrite (Rs 695 crore), Atul Ltd (Rs 656 crore), Torrent Pharmaceuticals (Rs 652 crore), and Chambal Fertilizers (Rs 640 crore), Gujarat Gas, Coromandel International, Granules India, Sun TV Network, Syngene International, City Union Bank, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Can Fin Homes, Bata India, Dr. Lal PathLabs, Abbott India, United Breweries (UBL), IPCA Laboratories, Metropolis Healthcare, Indiamart Intermesh, Mahanagar Gas (MGL), and JK Cement.
Meanwhile, Zomato, Adani Green, Jio Financial, DMart, and Tata Technologies could also be thought of for inclusion within the F&O section.
Stocks that meet the eligibility criteria within the underlying money market of any inventory change might be allowed to commerce within the fairness derivatives section of all inventory exchanges. The by-product contracts might be settled by the clearing firms at a value calculated based mostly on the volume-weighted common value (VWAP) from the money section throughout all exchanges
Additionally, the market watchdog has launched a brand new framework referred to as the product success framework (PSF) particularly for single-stock derivatives.
At least 15 per cent of buying and selling members energetic in all inventory derivatives, or 200 buying and selling members (whichever is decrease), should have traded in any by-product contract on the inventory being reviewed, on common, every month through the evaluate interval, in line with the PSF. Also, buying and selling exercise should be noticed on a minimal of 75 per cent of the buying and selling days inside the evaluate interval.
The inventory beneath evaluate ought to preserve a mean every day turnover (combining futures and choices premium) of at least Rs 75 crore, together with a mean every day notional open curiosity (futures and choices mixed) of at least Rs 500 crore through the evaluate interval.
