Why was Supreme Industries dropped from the new F&O list by the NSE?

The decision was communicated late on 29-December. You would recollect that back in November 2021, the NSE had issued Circular No: 94/2021 announcing the introduction of futures and options contracts on 7 stocks. These 7 stocks included Balrampur Chini, GNFC, Hindustan Copper, NBCC India, Rain Industries, Supreme Industries and Tata Communications. The effective date for their inclusion was 31-December.

On 29-December, NSE issued Circular No: 107/2021 intimating the members that the F&O inclusion of Supreme Industries was being withdrawn. The reason given was that Supreme Industries did not meet one of the eligibility criteria during the December period. The explicit condition of the inclusion in F&O always was that it was subject to fulfilment of eligibility criteria of Quarter Sigma computation cycle of December 2021.

Meanwhile, NSE has also clarified that in the case of the other 6 companies the inclusion in F&O will go ahead as originally planned. The finer details about strike prices, lot size, quantity freeze limits etc have been communicated separately on 31-December. There are certain conditions for inclusion in F&O like being in top 500 in terms of market cap & average traded value, median order size conditions, MWPL and delivery share conditions.