F&O Exclusion: BSE Removes HUDCO, Piramal Pharma, and 2 More from Equity Derivatives Segment

The BSE has removed Housing & Urban Development Corporation Ltd (HUDCO), Piramal Pharma Ltd, Tata Technologies Ltd, and Torrent Power Ltd from its equity derivatives segment. Futures and options (F&O) contracts in these stocks will cease trading from May 4, 2026, and no new contracts will be introduced for subsequent expiry months. 

Current contracts for February, March, and April 2026 will continue until their respective expiry dates: February 26, March 25, and April 30. After May 4, these securities will have no derivative contracts available for trading.

Index Constituents and Market Impact

Among these companies, HUDCO, Piramal Pharma, and Tata Technologies are part of the BSE 500 index, while Torrent Power belongs to the BSE 200 index. On Tuesday, HUDCO shares fell 1.12%, Tata Technologies declined 2.30%, Piramal Pharma dropped 1.34%, and Torrent Power gained 1.26%.

Also Read: Asset Monetisation Pipeline 2.0: Government Unveils ₹16.72 Lakh Crore Plan with PSU Stake Sales

Eligibility Criteria and Implications

The move follows the exchange’s eligibility norms for the derivatives segment. A stock must, over a rolling six-month period, meet these criteria: a Median Quarter Sigma Order Size of at least ₹75 lakh, a market-wide position limit (MWPL) of at least ₹1,500 crore, and an average daily delivery value of ₹35 crore or more in the cash segment. Only stocks satisfying these benchmarks on the underlying cash market of a recognised exchange are permitted in derivatives trading.

Stocks failing to meet these requirements are excluded from derivatives trading for one year from their last trading day. As a result, F&O trading in these four stocks can resume only after May 2027, provided they meet the eligibility norms again.

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.