The National Stock Exchange (NSE) had announced earlier this month that Adani Power, Cochin Shipyard, Hyundai Motor India, Force Motors, Godfrey Phillips India, Motilal Oswal Financial Services, Nippon Life India Asset Management and Vishal Mega Mart will be introduced to the derivatives segment.
In a circular issued on Monday, NSE announced the market-wide position limits, trading member-wise position limits, FII/FPI (Category I & II), mutual fund position limits, trading member proprietary limits and client-level limits.
How have these stocks performed recently
Adani Power shares have gained around 4% in the past six months. Hyundai Motor India, which debuted on stock markets in October 2024, has fallen over 31% in the past six months. Force Motors shares, meanwhile, gained more than 15%.
Godfrey Phillips India shares declined 45% in the same time, Motilal Oswal Financial Services and Vishal Mega Mart shares fell 29% each, Nippon Life India Asset Management dropped 8%, and Cochin Shipyard shares declined 33% in the past six months.
The addition of these stocks to F&O segment is expected to bring better liquidity to the stocks with higher trading volumes.
Market regulator Securities and Exchange Board of India (SEBI) tightened the eligibility criteria for stocks to be a part of the derivatives segment in August 2024.
One of the criteria for a stock to qualify for the F&O segment is liquidity – the stock must be traded by a wide set of market participants to prevent manipulation and lower risks to the system.
“Given the need to ensure that only high-quality stocks with sufficient market depth are allowed to trade in the derivatives segment and considering the growth witnessed in market parameters since the last review conducted in 2018, the eligibility criteria for entry and exit of stocks in the derivatives segment have been revised,” SEBI had said in a circular issued on August 31, 2024.