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NSE Removes Four Stocks from F&O Segment

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  Published in Science and Technology on Monday, February 23rd 2026 at 12:13 GMT by moneycontrol.com
      Locales: Maharashtra, INDIA

Mumbai, February 23rd, 2026 - The National Stock Exchange (NSE) has announced that four companies - Balrampur Chini Mills, Intellect Design Arena, Jubilant FoodWorks, and Persistent Systems - will be removed from the Futures & Options (F&O) segment, effective April 30th, 2026. This decision, detailed in a recent NSE circular, impacts investors currently holding positions in these stocks and raises broader questions about stock eligibility criteria and market dynamics.

The NSE regularly reviews stocks eligible for F&O trading to ensure market liquidity and stability. The F&O segment allows investors to trade derivatives based on underlying assets, offering opportunities for hedging, speculation, and arbitrage. Inclusion in this segment typically boosts a stock's visibility and trading volume. Conversely, exclusion can lead to reduced liquidity and potentially impact price discovery.

According to the NSE, the four companies failed to meet the prescribed minimum criteria for continued inclusion in the F&O segment. These criteria generally revolve around two key factors: turnover and market capitalization. Turnover represents the total value of shares traded over a specific period, indicating trading activity and investor interest. Market capitalization, calculated by multiplying the share price by the number of outstanding shares, reflects the company's overall size and value. The NSE doesn't publicly disclose the exact threshold numbers, but it's understood they are revised periodically to reflect market conditions.

What does this mean for investors?

Investors currently holding F&O positions (futures or options contracts) in Balrampur Chini Mills, Intellect Design Arena, Jubilant FoodWorks, or Persistent Systems must square off or close their positions before the expiry date of the existing contracts. Failure to do so will result in automatic squaring off by the exchange, potentially incurring losses. This is crucial for anyone actively trading derivatives on these stocks. The upcoming expiry dates will likely see increased volatility as traders adjust their portfolios.

After April 30th, these stocks will be moved to the 'Non-derivative eligible' list, meaning no new F&O contracts will be created for them. While investors can still buy and sell the underlying shares on the cash market, the derivative trading avenue will no longer be available. This significantly alters the trading strategy available for these stocks.

Why were these stocks excluded?

While the NSE circular cites failure to meet the criteria, understanding the specific reasons behind the lower turnover and market capitalization for each company provides valuable insight.

• Balrampur Chini Mills: The sugar industry is often cyclical, heavily influenced by weather patterns, government policies, and global sugar prices. A downturn in the sugar cycle may have contributed to reduced trading activity.
• Intellect Design Arena: This financial technology company operates in a niche sector. While growth potential exists, its relatively smaller size compared to industry giants may impact overall trading volume.
• Jubilant FoodWorks: A major player in the quick-service restaurant (QSR) sector, Jubilant FoodWorks has faced increased competition in recent years. Changes in consumer preferences and economic conditions could have affected its stock performance and trading activity.
• Persistent Systems: Though a growing IT services company, Persistent Systems may have not reached the scale required by the NSE to remain in the F&O segment, especially when compared to larger IT firms.

Implications for the Market

This move by the NSE is a reminder that stock eligibility for F&O trading is not guaranteed. Companies need to consistently maintain healthy turnover and market capitalization to remain attractive to derivative traders. The exclusion of these four stocks could lead to a slight decrease in overall F&O volume, but the impact is expected to be contained given their relatively smaller share of the total F&O market.

Analysts suggest that this periodic review and adjustment of the F&O list is a healthy practice for the market. It ensures that the F&O segment remains focused on liquid and actively traded stocks, benefiting both traders and the exchange. Investors are advised to stay informed about these changes and adjust their trading strategies accordingly. Furthermore, reviewing the NSE's eligibility criteria and regularly monitoring the performance of their portfolios is crucial for managing risk and maximizing returns.