InvestorQ : What is your view on the impact of the F&O exclusions?
prachi Patwardhan made post

What is your view on the impact of the F&O exclusions?

4 years ago

The NSE announced on Monday 25 November the exclusion of 4 stocks from the F&O list. These four stocks are Dish TV, NBCC, Tata Motors DVR, and Castrol India which will move out of the futures & options segment. They will be traded for now but these stocks will not be a part of F&O from the February 2020 series. As a result, no contracts will be available for trading in these stocks from January 31, 2020. The existing contracts of expiry months November, December and January will continue to be available for trading till their expiry and new contracts will also be added in these months. However, as of January 31, 2020, all these contracts will be out.

You may have noticed that the stock prices did correct sharply after this announcement. Normally, many of the active traders who used to hedge their position in F&O with contrary futures positions will now be out of the market. This is likely to reduce the speculative and hedger interest in these stocks.