IRCTC to Exit F&O in 2026: Here is What Changes for Traders and the Stock?

IRCTC will be removed from the Futures and Options (F&O) segment from February 25, 2026. The announcement by the NSE follows tighter eligibility norms for stocks trading in derivatives introduced by the SEBI.

Why Is IRCTC Being Removed from F&O?

SEBI recently raised the bar for inclusion in the derivatives segment. Stocks now need to meet higher requirements related to liquidity, delivery value, and market-wide position limits. IRCTC no longer satisfies these revised conditions, leading to its removal from the F&O list.

The exchange clarified that existing contracts for December 2025, January 2026, and February 2026 will remain active until expiry. However, no new F&O series will be introduced after that.

How Will This Impact IRCTC Share Price? 

The announcement has led to a spike in trading activity, as traders adjust or unwind their positions ahead of the exit. Such transitions often bring temporary volatility as open positions are closed or rolled over before the final expiry.

IRCTC shares were marginally higher in early trade, even as market participants reassessed their strategies.

What Does This Mean for Traders?

Once IRCTC exits the F&O segment, leverage-based trading will no longer be possible. Traders will not be able to take large positions with limited capital, and hedging strategies using options will come to an end.

The absence of derivatives usually results in lower intraday volatility over time, as speculative activity reduces. However, this also means fewer short-term trading opportunities for derivatives-focused traders.

How Will IRCTC Trade Without Derivatives?

After the F&O exit, IRCTC will trade purely based on cash-market fundamentals. Price movements are likely to be driven by earnings, business updates, and overall sentiment around the railway sector, rather than derivative-led positioning.

Importantly, the exit from F&O does not change IRCTC’s business strength. The company remains a monopoly player in railway ticketing, catering, and tourism services, and continues to be debt-free.

Read more: Apollo Micro Systems Share Price Hits Upper Circuit on Strong Buying Interest.

Conclusion

IRCTC’s removal from the F&O segment marks a shift in how the stock will behave in the market. While near-term volatility may persist as contracts near expiry, trading patterns are expected to stabilise once derivatives dry up. For traders, the focus will move away from leverage and short-term bets, and more towards cash-market cues and long-term fundamentals as 2026 approaches. 

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.