SEBI changes entry-exit rules for shares in F&O segment: 23 stocks including JK Cement may be out, Zomato-Adani Green will enter the segment

Stock market regulator Securities Exchange Board of India (SEBI) has changed the rules regarding entry and exit of shares in the futures and options (F&O) segment. The regulator wants the stocks that are part of the derivatives market to be more liquid and include more market participants. So that manipulation can be prevented and the risk to the system is reduced.

According to the new rules of SEBI, stocks in the options segment that do not meet the criteria for three consecutive months will be removed. After the removal of these stocks, new contracts will also not be issued.

Average Daily Delivery Value of the stock increased to ₹35 crores
According to SEBI’s circular, the Median Quarter Sigma Order Size (MQSOS) of the stock should now be at least Rs 75 lakh. Earlier it was Rs 25 lakh. Apart from this, the Market Wide Position Limit (MWPL) has been increased from Rs 500 crore to at least Rs 1,500 crore.

Apart from this, the average daily delivery value of the stock has been increased from Rs 10 crore to Rs 35 crore. The reason for this is that the average daily delivery value has increased significantly.

23 stocks may be out of the F&O segment
Due to the change in rules, some stocks may exit the F&O segment and some new stocks may join this segment. According to brokerage firm IIFL, 23 stocks may be out of the F&O segment based on the new rules. These include Laurus Labs, Ramco Cements, Deepak Nitrite, Atul Limited Torrent Pharma, Chambal Fertilizers, Gujarat Gas, Coromandel International, Granules India.

Apart from this, Sun TV Network, Syngene International, City Union Bank, Gujarat Narmada Valley Fertilizers and Chemicals, Can Fin Homes, Dr Lal Pathlabs, Abbott India, United Breweries, IPCA Lab, Metropolis Healthcare, Indiamart, Mahanagar Gas and JK Cement may also be out. On the other hand, stocks like Zomato, Adani Green, Jio Financial, DMart, and Tata Technologies can be included in the F&O segment.

What are futures and options?
Futures and Options (F&O) are a type of financial instrument that allows an investor to take large positions in stocks, commodities, currencies with a small amount of capital. Futures and options are a type of derivative contract that has a fixed duration.

Within this time frame, their prices change according to the price of the stock. Futures and options of each stock are available in one lot size.