NSE adds Zomato, Paytm, Adani Energy, others to F&O list
What's the story
The National Stock Exchange (NSE) has added 45 new stocks to its futures and options (F&O) trading segment. The major expansion includes high-profile companies such as Zomato, Jio Financial, Paytm, Delhivery, and Yes Bank, Adani Energy, and Avenue Supermarts. The new securities will be available for trading from November 29. The NSE said further details about the securities will be shared with members on November 28 through a separate circular.
Market evolution
Expansion reflects shift in F&O segment
The addition of these new stocks marks an evolution in the F&O segment, which is now becoming more inclusive of companies. This change is most noticeable with the addition of new-age firms that have been listed in the past two years. The expansion comes after the Securities and Exchange Board of India (SEBI) approved revised F&O stock eligibility criteria in June.
Regulatory changes
SEBI's updated framework aims to attract quality stocks
SEBI's revised framework seeks to bring higher liquidity and quality stocks to the derivatives segment by imposing strict requirements. These include increased thresholds for the market-wide position limit, median quarter sigma order size, and average daily delivery value (ADDV) in the cash market. The new criteria also lay down specific guidelines for the inclusion, deletion, cancelation, and re-entry of stocks in the F&O segment.
New measures
SEBI introduces 'product success framework' for stock derivatives
Along with the revised criteria, SEBI has also introduced a 'product success framework' (PSF) for stock derivatives. The new measure, which is in line with the current framework for index derivatives, aims to ensure product viability and market stability in the derivatives segment. The move is a part of SEBI's continued efforts to make India's financial markets more robust and attractive.