The Securities and Exchange Board of India (SEBI) has announced new criteria that could lead to the addition of up to 65 stocks in the futures and options segment, with only 25 facing exclusion. The final decision rests with the market regulator. The revised criteria underscore four key areas: average daily market capitalization and traded volume over the past six months must be in the top 500, median quarter sigma order size should exceed Rs 75 lakh, market-wide position limit should be more than Rs 1,500 crore, and average daily delivery value in the cash market should surpass Rs 35 crore. Some potential names that may enter the futures and options space include Zomato Ltd., Jio Financial Services Ltd., Avenue Supermarts Ltd., and Adani Green Energy Ltd. Notably, public sector unit stocks like Indian Railway Finance Corp., SJVN Ltd., and Rail Vikas Nigam Ltd. also meet the criteria for inclusion. On the other hand, possible exclusions encompass United Breweries Ltd., L&T Technology Services Ltd., and Balrampur Chini Mills Ltd., among others. The changes in the eligibility criteria aim to address concerns of illiquid stocks and further strengthen the cash and F&O markets in India.
