NSE Drops Exide, Nuvama from F&O Segment

The National Stock Exchange (NSE) has announced the removal of Exide Industries and Nuvama Wealth Management from its Derivatives (F&O) segment. This decision stems from SEBI's updated eligibility framework, introduced in August 2024, which tightens regulations to prevent market manipulation and protect investors in less liquid stocks.

Existing F&O contracts for these companies will remain active until their respective expiry dates in July 2026. However, no new expiry contracts will be introduced after the current series concludes. Consequently, trading in F&O for both Exide Industries and Nuvama Wealth Management will completely cease on July 29, 2026.

SEBI's new criteria require stocks to be among the top 500 based on average market capitalization and traded value over six months. Additional conditions include a median quarter-sigma order size of at least ₹75 lakh, a market-wide position limit of ₹1,500 crore, and an average daily delivery value of ₹35 crore. Failure to meet any single criterion can lead to exclusion from the F&O list.

These stringent rules are designed to curb manipulation by operators in stocks with small market caps and low delivery volumes, thereby reducing risks within the derivatives market. Once delisted, a stock must maintain eligibility for six consecutive months before reapplying for inclusion, with a mandatory one-year cooling-off period.