Considering the last six month's average criteria of NSE parameters, the brokerage has short listed 11 stocks for fresh inclusion in the F&O segment.
The National Stock Exchange may add another 11 stocks to the Futures & Options segment in the coming months, according to ICICI Securities.
The NSE added just five stocks to the derivates market in the first half of 2020.
SBI Life Insurance Company was the last addition in April in the F&O segment, which activated for trading with new contracts with effect from May 4 this year.
Before that, the exchange included Godrej Properties with effect from March 27, while in February it had decided to add Bandhan Bank, HDFC Life Insurance Company and Info Edge India which started trading in the F&O segment from February 28.
But this addition of above three stocks was done after a gap of around two years, while in those years, there was only exclusion of stocks. As per the latest list available on the NSE, there are 141 stocks trade in the F&O segment along with 2 indices Nifty50 and Bank Nifty, whereas the exchange removed Nifty IT contracts with effect from July this year.
The list of stocks used to be more than 200 in 2017.HDFC AMC, ICICI Lombard General Insurance Company, Trent, Adani Gas, Ipca Labs could be among the stocks that get added, said ICICI Securities in a report.
Considering the last six month's average criteria of NSE parameters, the brokerage has shortlisted certain stocks for fresh inclusion in the F&O segment.
"Hence, from a data perspective, we have identified the following 11 stocks that qualify for F&O inclusion. A few stocks from this list may be included in the next forthcoming announcement," it said.
On the other hand, Century Textiles & Industries, Equitas Holdings and Ujjivan Financial Services will stop trading in F&O with effect from August 28 this year. No contracts will be available for trading in Just Dial and NCC with effect from July 31, 2020.
Meanwhile, Adani Power stopped trading in F&O segment with effect from June 26, CESC and Yes Bank from May 29, and Oil India May 4, 2020.
The exchange says Futures & Options contracts may be introduced on new securities which meet the below-mentioned eligibility criteria, subject to approval by SEBI.
1) The stock shall be chosen from among the top 500 stocks in terms of average daily market capitalisation 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 not be less than Rs 25 lakh. For this purpose, a stock's quarter-sigma order size shall mean the order size (in value terms) required to cause a change in the stock price equal to one-quarter of a standard deviation.
3) The market-wide position limit in the stock shall not be less than Rs 500 crore on a rolling basis. The market-wide position limit (number of shares) shall be valued taking the closing price of stocks in the underlying cash market on the date of expiry of the contract in the month. The market-wide position limit of open positions (in terms of the number of the underlying stock) on futures and options contracts on a particular underlying stock shall be 20 percent of the number of shares held by non-promoters in the relevant underlying security i.e. free-float holding.
4) Average daily delivery value in cash market shall not be less than Rs 10 crore in the previous six months on a rolling basis. The average daily deliverable value shall be computed taking deliverable quantity as per client level as computed by NSE Clearing Ltd on a daily basis and close price of the trade date.
In the first half of 2020, the exchange had decided to exclude total 11 stocks from the F&O segment, and before that, more than 60 companies excluded by the NSE with a span of around two years.