The new SEBI F&O criteria have been implemented, putting 23 stocks at risk of being excluded.

SEBI has introduced new eligibility criteria for stocks in the Futures and Options (F&O) segment. According to an IIFL note, the criteria are mostly consistent with the proposal from June 28, 2024, and require stock exchanges to update their rules accordingly.

Under the new guidelines, if a stock in the F&O segment fails to meet the criteria for three consecutive months on a rolling basis, it will be removed from the segment, and no new contracts will be issued for these stocks once they exit.

The updated SEBI circular specifies that a stock's Median Quarter Sigma Order Size (MQSOS) must now be at least Rs 75 lakh, up from the previous Rs 25 lakh. Additionally, the Market Wide Position Limit (MWPL) has been raised to a minimum of Rs 1,500 crore from Rs 500 crore. The stock's Average Daily Delivery Value in the cash market must now be at least Rs 35 crore, up from Rs 10 crore, due to a notable increase in the average daily delivery value.

According to the IIFL note, 23 stocks may be excluded from the F&O segment based on the new criteria. These include Laurus Labs (with an open interest of Rs 1,166 crore), Ramco Cements (Rs 910 crore), Deepak Nitrite (Rs 695 crore), Atul Ltd (Rs 656 crore), Torrent Pharmaceuticals (Rs 652 crore), and Chambal Fertilizers (Rs 640 crore). Other potential exclusions include Gujarat Gas, Coromandel International, Granules India, Sun TV Network, Syngene International, City Union Bank, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Can Fin Homes, Bata India, Dr. Lal PathLabs, Abbott India, United Breweries (UBL), IPCA Laboratories, Metropolis Healthcare, Indiamart Intermesh, Mahanagar Gas (MGL), and JK Cement.