In a move aimed at aligning with regulatory compliance and risk management, the National Stock Exchange (NSE) has announced the exclusion of 8 stocks from its Futures and Options (F&O) segment. This strategic action will come into effect on August 29, 2025.
As per the circular released on June 23, 2025, the NSE has identified the following 8 companies for exclusion from the F&O derivatives segment:
The decision is part of the exchange’s periodic review based on criteria such as liquidity, stock price movement, and market-wide position limits (MWPL). Derivative contracts in these securities will not be available for trading from the said date.
NSE conducts routine assessments to enhance the efficiency and reliability of the derivatives market. The exclusion of stocks from F&O is based on regulatory stipulations, including maintaining necessary levels of liquidity and preventing market manipulation. Stocks that consistently fail to meet these regulatory thresholds are removed to protect investor interest and maintain market discipline.
This is in line with the SEBI-mandated framework under which contracts in securities that do not meet enhanced eligibility criteria are discontinued.
For traders and investors holding open positions in these stocks, all existing F&O contracts will expire on their respective expiry dates up to August 28, 2025. No fresh contracts will be introduced for these stocks beyond this date, thus enabling an orderly exit.
Market participants are advised to wind up or roll forward their positions accordingly within the stipulated timeline to avoid any trading or settlement issues.
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The exclusion is expected to have a nominal impact on overall trading volumes, as the removed securities represent a relatively smaller portion of the total F&O turnover on the NSE. However, it signals a tightening grip on maintaining discipline within the derivatives space, a critical driver of short-term market activity.
Lower participation, lack of depth, or consistent violation of MWPL thresholds typically lead to such actions. These measures are also aimed at ensuring that all traded F&O stocks remain sufficiently liquid and less prone to speculative volatility.
Despite headwinds in the final quarter, NSE posted a strong financial year for FY25. The exchange reported a 47% year-on-year rise in consolidated net profit, amounting to ₹12,188 crore for the year ending March 31, 2025. Total consolidated income increased 17% to ₹19,177 crore over the same period.
The standalone figures reflected even stronger growth, with net profit soaring 69% YoY to ₹11,246 crore and total standalone income up 33% at ₹19,823 crore. Standalone operating EBITDA also rose 33% to ₹10,243 crore in FY25.
On a quarter-on-quarter basis, however, the exchange saw a sequential drop in Q4 earnings. Net profit for the January to March quarter declined 31% to ₹2,650 crore from ₹3,834 crore recorded in Q3FY25. The consolidated transaction charge revenue also saw a 15% drop to ₹2,939 crore due to decreased volumes in both cash and F&O segments.
Furthermore, consolidated operating EBITDA slipped 18% to ₹2,799 crore in Q4. Earnings per share (EPS) for the fourth quarter stood at ₹10.71, compared to ₹15.49 in Q3.
With the exclusion of 8 stocks from the F&O segment effective August 29, 2025, NSE is reinforcing its compliance-driven approach aimed at maintaining a robust and efficient derivatives trading landscape. This action, along with other operational reforms, underscores the exchange’s commitment to market stability and investor confidence.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 24, 2025, 10:45 AM IST
Team Angel One
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