NSE to remove 9 more stocks from F&O segment

The National Stock Exchange, on July 22, has decided to remove nine more stocks from the futures and options segment with effect from September 27.

Arvind, Engineers India, Hindustan Zinc, MCX, Raymond, IDBI Bank etc are among the nine stocks that will be excluded from derivative segment.

"The existing unexpired contracts of expiry months July 2019, August 2019 and September 2019 would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months," the exchange said.

Accordingly, no contracts will be available for trading in these stocks with effect from September 27, 2019, it added.

"This might have a negative impact on stocks until the expiry of September 2019 contracts and a gap down on July 23. But we take it as a positive for long term investors as speculation trading gets removed from stocks which are fundamentally stable," Sameer Kalra, Founder of Target Investing told Moneycontrol.

In April, the exchange had removed 34 stocks from the F&O segment, which had stopped trading from the July series.

A SEBI Circular dated April 11, 2018 stated that after a period of one year from the date of circular, only those stocks which meet the enhanced eligibility criteria will remain in the derivatives segment.