The National Stock Exchange via a circular dated, 21 April, 2009, has excluded 50 securities from the futures and options segment.
According to the release issued by the exchange, the following 50 stocks will not be available for trading on expiry of existing contract months - i.e April, May and June.
In other words, there will be no fresh contracts of July onwards for these 50 stocks. Prominent stocks to be excluded are - Alok Textiles, Arvind, Ballarpur Industries, Bata India, Gateway, GNFC, Jet Airways, MindTree, NDTV, Network 18, Reliance Industrial Infrastructure, S. Kumars, Strides Arcolab, TVS Motor, UTV Software and Wockhardt.
The exclusion is based on the stock selection/exclusion criteria as prescribed by SEBI vide circular SEBI/DNPD/CIR-31/2006/ dated September 22, 2006.
Further through a separate release, the exchange has also partially modified SEBI circular SMDRP/DC/CIR-13/02 dated December 18, 2002, SEBI/DNPD/Cir-26/2004/07/16 dated July 16, 2004 and SEBI/DNPD/Cir-31/2006 dated September 22, 2006 regarding criteria for selecting the stock in derivatives segment.
The eligibility criteria for INCLUSION of scrips in F&O segment shall be as under:
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1. The stock shall be chosen from amongst the top 500 stocks in terms of average daily market capitalization and average daily traded value in the previous six months on a rolling basis.
2. The stock’s median quarter sigma order size over the last six months shall be not less than Rs 5 lakh.
3. The market wide position limit (MWPL) in the stock shall not be less than Rs 100 crore.
The criteria for EXCLUSION of scrips in F&O segment shall be as under:
1. For an existing F&O stock, the continued eligibility criteria is that market wide position limit in the stock shall not be less than Rs 60 crore and stock’s median quarter-sigma order size over the last six months shall be not less than Rs. 2 lakh. The stock shall be excluded if the above criteria is not fulfilled for consecutively three months.
Further, once the stock is EXCLUDED from the F&O list, it shall not be considered for RE-INCLUSION for a period of one year.