In a major update, the National Stock Exchange (NSE) announced on Friday, December 20, that futures and options (F&O) contracts for 16 securities, including prominent names like Dr Lal Pathlabs, PVR INOX, and City Union Bank, will be phased out. Effective February 28, 2025, no new F&O expiry contracts will be introduced for these securities.
Key Stocks Affected
The list of affected securities includes:
- Abbott India
- Atul Ltd
- Bata India
- Can Fin Homes
- Coromandel International
- City Union Bank
- Gujarat Narmada Valley Fertilizers & Chemicals (GNFC)
- IndiaMART InterMESH
- IPCA Laboratories
- Dr Lal Pathlabs Ltd
- Metropolis Healthcare Ltd
- Navin Fluorine International
- PVR INOX
- Sun TV Network
- United Breweries
Details from NSE’s Circular
According to the NSE, contracts for existing expiry months — December 2024, January 2025, and February 2025 — will remain available for trading until their respective expiry dates. However, new contracts for these securities will not be issued post these expiries. Additionally, new strike prices will continue to be introduced for the existing contract months until February 2025.
“Members are requested to note that no contracts will be available for trading in these securities after February 28, 2025,” NSE clarified in its circular.
Expansion of F&O Contracts on New Stocks
While 16 securities are being removed, NSE is expanding its F&O portfolio. Last month, it introduced F&O contracts for 45 new stocks, including high-profile entrants like Zomato, Jio Financial Services, and Avenue Supermarts (DMart). This move was approved by the Securities and Exchange Board of India (SEBI) and aims to cater to the growing interest in these securities.
The introduction of these contracts began on November 29, 2024, as part of NSE’s strategy to diversify its offerings and meet market demand.
Stay tuned for more updates on how these changes may impact trading strategies and market trends.
