Three Adani Group companies—Adani Green Energy, Adani Energy Solutions, and Adani Total Gas—are now eligible to be included in the derivatives segment, according to the revised entry rules for futures & options (F&O). The Securities and Exchange Board of India (SEBI) announced these changes on Friday through a circular, which adjusts the criteria for both entry and exit of stocks in the F&O market.
Nuvama Institutional Equities, which analyzed the new criteria, identified these Adani stocks as likely candidates for inclusion in the derivatives segment. However, SEBI will make the final decision.
Under the updated rules, SEBI has significantly increased the median quarter sigma order size (MQSOS) over the past six months from Rs 25 lakh to Rs 75 lakh. The regulator explained that this change reflects the threefold increase in average market turnover since the last review.
In its circular, SEBI stated that the MQSOS criteria needed to be raised by three to four times to keep pace with market growth.
Additionally, SEBI has revised the market-wide position limit (MWPL) for a stock over the previous six months from Rs 500 crore to Rs 1,500 crore. This change aligns with the nearly threefold rise in market capitalization since the last review. The regulator also raised the minimum average daily delivery value (ADDV) in the cash market over the past six months from Rs 10 crore to Rs 35 crore, reflecting the tripling of the ADDV during this period.
SEBI emphasized that, unlike index derivatives that are cash-settled, single-stock derivatives are settled physically upon expiry. The criteria for Average Daily Market Capitalization and Average Daily Traded Value (ADTV) for the top 500 stocks remain unchanged.
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