Four Stocks to be out of F&O list from April end, says NSE circular.

Four Stocks to be out of F&O list from April end, says NSE circular.

• NSE to end F&O contracts on HUDCO, Piramal Pharma, Tata Tech, Torrent Power
• No F&O trading in these stocks after April 29, 2026
• Move is as per SEBI's stricter norms for F&O stock eligibility

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NSE has announced the phased discontinuation of futures and options (F&O) contracts on four stocks following revised eligibility norms issued by the Securities and Exchange Board of India (SEBI). In a circular issued on Monday, the exchange said no new F&O contracts will be introduced in fresh expiry months for Housing & Urban Development Corporation Limited (HUDCO), Piramal Pharma Limited, Tata Technologies Limited, and Torrent Power Limited once the current contracts expire.

Following the expiry of the April series, all derivatives trading in these securities will cease. As per the circular, no F&O contracts in the four stocks will be available for trading after April 29, 2026.

However, existing contracts with expiries in February, March, and April 2026 will remain available for trading until their respective expiry dates. The exchange will also continue introducing new strike prices within these ongoing contract cycles.

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As per exchange e move comes in line with SEBI’s August 2024 framework tightening stock eligibility criteria for derivatives trading, aimed at ensuring better liquidity and risk management in the equity derivatives segment.

However, the existing unexpired contracts of expiry months February 2026, March 2026 and April 2026 would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months. Accordingly, no contracts shall be available for trading in the above-mentioned securities with effect from April 29, 2026.

SEBI’s stock selection criteria for F&O

In August 2024, SEBI issued the revised eligibility norms for stocks to enter or remain in the F&O segment have been tightened. The circular prescribed that stock should be among the top 500 by average market cap and traded value over six months. The median quarter-sigma order size (MQSOS) threshold must be Rs 75 lakh , market-wide position limit (MWPL) of Rs 1,500 crore , and average daily delivery value (ADDV) to Rs 35 crore . Any F&O stock which fails any of the criterion is out of list, though eligibility on at least one exchange suffices. SEBI has also extended the Product Success Framework to stock derivatives, adding participation, liquidity, and activity thresholds, reviewed monthly.

Why Stringent criteria for selection of F&O stocks

SEBI tightened norms with an aim to curb manipulation by filtering out stocks with low delivery volumes or smaller market capitalisation, which are more vulnerable to price rigging. The tighter thresholds create deterrents for operators seeking to exploit illiquid shares. Also, extending the Product Success Framework to stock derivatives helps prevent concentration risks. It reduces the chances of a handful of brokers gaming the system through circular or coordinated trading, thereby strengthening market integrity.

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