Home / Business and Economy / SEBI Tightens F&O Rules: Force Motors & Godfrey Phillips Included
SEBI Tightens F&O Rules: Force Motors & Godfrey Phillips Included
22 Mar
Summary
- Force Motors and Godfrey Phillips securities join F&O segment April 1.
- SEBI increased liquidity thresholds for F&O inclusion significantly.
- New rules aim to enhance market integrity and reduce manipulation risks.
Starting April 1, 2026, derivatives contracts for Force Motors Ltd. and Godfrey Phillips India Ltd. will be listed on the futures and options (F&O) segment. This move comes after SEBI's rule amendments in August 2024, which have elevated the criteria for stock inclusion. The exchange announced that market lot and strike scheme details would be released on March 30.
The revised SEBI regulations mandate a higher median quarter sigma order size, increasing it from Rs 25 lakh to Rs 75 lakh to enhance stock liquidity metrics. Furthermore, the minimum market-wide position limit has been tripled to Rs 1,500 crore, and the minimum average daily delivery value is now Rs 35 crore, a 3.5-fold increase.
Stocks must meet these stringent criteria, assessed over a six-month rolling period in the cash market, to qualify for the derivatives segment. Conversely, those failing to meet the standards for three consecutive months will be delisted, though existing contracts will expire as normal. Any stock removed cannot be relisted for a year.
