The National Stock Exchange (NSE) announced that five listed stocks will be excluded from the Futures and Options (F&O) segment starting August 1, 2025. The affected stocks include Aarti Industries, Birlasoft, Hindustan Copper, Mahanagar Gas, and Piramal Enterprises.
As per the latest NSE’s circular, no new expiry month contracts will be introduced for these securities after the expiry of the existing ones. This action comes as part of the implementation of stricter eligibility norms introduced by the Securities and Exchange Board of India (SEBI).
Existing contracts to remain until expiry
The NSE also said that contracts ending in May, June, and July 2025 will still be available for trading until they expire.
In addition to that, new strike prices will continue to be added for the currently available expiry series, to make sure that ongoing positions can be managed without disruption.
Why the exit? SEBI’s stricter rules explained
The exclusion of these stocks is linked to SEBI’s revised framework for derivatives eligibility, announced on August 30 last year. Under the new rules, the median quarter sigma order size (MQSOS), which shows how easily a stock can be traded, has been raised from Rs 25 lakh to Rs 75 lakh.
Also, the minimum market-wide position limit (MWPL) has been increased three times, that is, from Rs 500 crore to Rs 1,500 crore and the minimum average daily delivery value has gone up from Rs 10 crore to Rs 35 crore.
These measures are introduced to improve the quality of stocks in the derivatives segment and reduce the scope for price manipulation. Any stock that does not meet these criteria for three months in a row will be taken out of the F&O segment and cannot be added back for the next one year from the date it was removed.
NSE introduces ‘Nifty Waves’ for media and entertainment sector
While some stocks are being phased out, the NSE is simultaneously introducing new opportunities for thematic investors. On May 2, the exchange launched the Nifty Waves Index, which focuses exclusively on India’s media, entertainment, and gaming sectors. It comprises 43 stocks, all drawn from the entertainment and media sectors. The base value of it is 1000.
This new index was introduced during the World Audio Visual & Entertainment Summit (WAVES) 2025, held at the Jio World Centre in Mumbai.