NSE to Exclude Piramal Enterprises, Hindustan Copper, MGL and 2 Others from F&O Segment Effective August 1, 2025

The National Stock Exchange (NSE) has announced that 5 securities will be excluded from the Futures and Options (F&O) segment with effect from August 1, 2025. The decision comes in light of revised eligibility norms issued by the Securities and Exchange Board of India (SEBI).

The 5 stocks to be excluded are:

• Aarti Industries Ltd.
   
• Birlasoft Ltd.
   
• Hindustan Copper Ltd.
   
• Mahanagar Gas Ltd.
   
• Piramal Enterprises Ltd.

As per the official filing, contracts for these stocks with expiry in May 2025, June 2025, and July 2025 will remain available for trading until their respective expiry dates. New strikes will continue to be introduced in the existing contract months until then.

Read More: F&O Changes: NSE to Exclude Apollo Tyres, Escorts Kubota, and 3 More Stocks from June Series. 

SEBI's Revised Norms Trigger F&O Changes

On August 30, 2024, SEBI introduced significant changes to the criteria that determine which stocks can be included in or excluded from the derivatives segment. These revisions aim to improve market integrity and reduce the risk of manipulation.

Key changes include:

• An increase in the median quarter sigma order size (MQSOS) from ₹25 lakh to ₹75 lakh. This metric assesses liquidity and ensures sufficient market depth.
   
• A rise in the minimum market-wide position limit from ₹500 crore to ₹1,500 crore.
   
• A hike in the minimum average daily delivery value from ₹10 crore to ₹35 crore.
   

These enhanced thresholds are expected to filter out stocks that lack adequate trading volumes or liquidity, thereby improving the quality of the F&O segment.

Entry and Exit Criteria for Derivatives Segment

As per the updated framework, stocks will be eligible for inclusion in the derivatives segment if they meet the new criteria based on their cash market performance over a rolling six-month period.

On the other hand, stocks that fail to meet the norms for 3 consecutive months will be removed from the derivatives segment. However, the existing contracts will remain active until their expiration dates.

Once removed, a stock cannot be reintroduced into the derivatives segment for a period of 1 year from its last date of trading in that segment.

Conclusion

The exclusion of these 5 stocks from the F&O segment underlines SEBI’s stricter regulatory approach aimed at enhancing transparency and reducing speculative risks. While these measures may limit speculative activity in the short term, they aim to strengthen the overall market structure in the long run.

Investors and traders dealing in the affected securities should take note of the expiry schedule and plan accordingly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/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.