19 PSU Stocks, Including IRFC, IREDA, and SJVN, Set for F&O Inclusion After SEBI Rule Change

Nineteen public sector stocks, including Indian Railway Finance Corporation (IRFC), Indian Renewable Energy Development Agency (IREDA), and SJVN, could soon be included in the futures & options (F&O) segment, following a revision of the rules by the Securities and Exchange Board of India (Sebi). According to Nuvama Institutional Equities, these stocks meet the new eligibility criteria set by Sebi.

Other potential entrants to the F&O segment include Rail Vikas Nigam Limited (RVNL), NHPC, Mazagon Dock Shipbuilders, Cochin Shipyard, Housing & Urban Development Corporation (HUDCO), Life Insurance Corporation of India (LIC), Union Bank of India, Oil India, Ircon International, Bharat Dynamics, NBCC, Bank of India, BEML, PNB Housing, NLC India, and Indian Bank.

The final decision on which stocks will be included in the F&O segment will be made by Sebi, even though these stocks appear to meet the updated criteria.

Sebi recently revised the rules for stocks entering and exiting the derivatives market. One significant change is the increase in the median quarter sigma order size (MQSOS) from ₹25 lakh to ₹75 lakh, reflecting the larger average market turnover since the last review. The market wide position limit (MWPL) for a stock has also been raised from ₹500 crore to ₹1,500 crore due to the overall increase in market capitalisation.

Additionally, Sebi has updated the requirement for a stock’s average daily delivery value (ADDV) in the cash market, increasing the minimum from ₹10 crore to ₹35 crore over the previous six months.

It’s important to note that unlike index derivatives, which are settled in cash, single stock derivatives are settled physically upon expiry. Sebi has not changed the criteria related to the Average Daily Market Capitalisation and Average Daily Traded Value (ADTV) for the top 500 stocks.