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Stock exchanges on Wednesday, November 13, 2024, announced the inclusion of 45 new stocks in the futures and options (F&O) trading segment, set to be available for trading from November 29. Among notable entrants include Zomato, Jio Financial, Paytm, Delhivery, and Avenue Supermarts, marking a significant expansion in F&O-eligible stocks.
The National Stock Exchange (NSE) clarified that details regarding the market lot size, strike schemes, and quantity freeze limits for these securities will be shared with members on November 28 via a separate circular.
The update provides India’s benchmark indices with the opportunity to incorporate newer, high-growth companies listed in the past two years, as only F&O-eligible stocks qualify for benchmark inclusion. The addition of these scrips reflects the ongoing shift in the F&O segment toward accommodating a broader mix of companies, including prominent new-age firms.
The expansion follows revised F&O stock eligibility criteria approved by the Securities and Exchange Board of India (Sebi) in June, with a detailed circular issued on August 30. The last major update to these criteria was in 2018, with the most recent addition of new stocks to the derivatives segment occurring in January 2022.
In addition to Zomato, Paytm, and Delhivery, the new list includes three Adani Group companies and other recently listed firms such as Nykaa and PB Fintech.
Sebi’s updated framework is designed to attract higher liquidity and quality stocks to the derivatives segment by enforcing stringent requirements. These include enhanced thresholds for the market-wide position limit, median quarter sigma order size, and average daily delivery value (ADDV) in the cash market.
Further, the new criteria outline specific guidelines for the inclusion, deletion, cancellation, and re-entry of stocks in the F&O segment.
Additionally, Sebi introduced a ‘product success framework’ (PSF) for stock derivatives, aligning it with the existing framework for index derivatives, to help ensure product viability and market stability in the derivatives segment.
The National Stock Exchange (NSE) clarified that details regarding the market lot size, strike schemes, and quantity freeze limits for these securities will be shared with members on November 28 via a separate circular.
The update provides India’s benchmark indices with the opportunity to incorporate newer, high-growth companies listed in the past two years, as only F&O-eligible stocks qualify for benchmark inclusion. The addition of these scrips reflects the ongoing shift in the F&O segment toward accommodating a broader mix of companies, including prominent new-age firms.
The expansion follows revised F&O stock eligibility criteria approved by the Securities and Exchange Board of India (Sebi) in June, with a detailed circular issued on August 30. The last major update to these criteria was in 2018, with the most recent addition of new stocks to the derivatives segment occurring in January 2022.
#NewsFlash | 45 Stocks Getting Added To F&O From November 29, 2024
Stocks to be included in F&O includes Adani Energy Solutions, Adani Green Energy, Angel One, APL Apollo Tubes, Adani Total Gas, Bank Of India, & BSE, IRFC, Jio Financial, Jindal Stainless, JSW Energy, Kalyan… pic.twitter.com/VytcIT5Ap7
— CNBC-TV18 (@CNBCTV18Live) November 13, 2024
In addition to Zomato, Paytm, and Delhivery, the new list includes three Adani Group companies and other recently listed firms such as Nykaa and PB Fintech.
Sebi’s updated framework is designed to attract higher liquidity and quality stocks to the derivatives segment by enforcing stringent requirements. These include enhanced thresholds for the market-wide position limit, median quarter sigma order size, and average daily delivery value (ADDV) in the cash market.
Further, the new criteria outline specific guidelines for the inclusion, deletion, cancellation, and re-entry of stocks in the F&O segment.
Additionally, Sebi introduced a ‘product success framework’ (PSF) for stock derivatives, aligning it with the existing framework for index derivatives, to help ensure product viability and market stability in the derivatives segment.
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