Polycab shares face removal from F&O segment on December 30

what happened

Shares of Polycab India may respond on Tuesday, October 13, to their removal from the futures and options (F&O) segment, cnbctv18.com reports. The exclusion takes effect on December 30. Contracts from the existing October, November and December series will remain available until their respective expiries, but no fresh contracts will be launched after that date. All outstanding positions must be closed on the maturity date of the final contract.

Rules issued by the Securities & Exchange Board of India (SEBI) and the National Stock Exchange use several tests for derivatives eligibility, including liquidity, the Market-Wide Position Limit (MWPL), corporate-governance concerns, IBC matters, restructuring and delisting. If a company enters insolvency proceedings or comes before the NCLT, its stock is automatically shifted to restrictive trading categories and becomes ineligible for F&O trading. The stock must also maintain an average MWPL of ₹1,500 crore, meet prescribed levels for the minimum order size needed to move its price, and retain strong cash-market volumes.

A stock removed from F&O cannot return for 12 months unless it again satisfies every condition. Those requirements must be met for six consecutive months. The exchange’s Risk Management Committee then checks the security’s quantitative and qualitative compliance before standard derivative contracts can be restored. Polycab’s removal comes five years after it entered the derivatives segment with the September F&O series of 2021.

In a Friday exchange filing, Polycab said the National Company Law Appellate Tribunal had stayed and put on hold the National Company Law Tribunal’s October 7 order admitting a Corporate Insolvency Resolution Process against the company. The case, Asier Metals Pvt. Ltd. versus Polycab India Ltd., concerns an alleged operational debt of ₹2.79 crore under Section 9 of the IBC. Polycab was subsequently placed in IRP Stage 0, allowing normal trading and leaving retail brokers free to accept new purchases. Its shares ended Monday 1.8% higher at ₹8,405 and are up 10% so far this year.

why it matters

The change affects how investors can trade Polycab derivatives and manage existing positions, while the company’s insolvency-related status remains part of the exchange’s eligibility framework.

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