Stocks Included In F&O Segment: Proposed Changes By SEBI

Stocks Included In F&O Segment: Proposed Changes By SEBI

Keywords:

F&O Segment
SEBI
Eligible Securities
Liquid Options
Market Capitalization Threshold

The Securities and Exchange Board of India (SEBI) has proposed changes to the eligibility criteria for stocks included in the Futures & Options (F&O) segment. Here are the key proposals:

Increase in Market Capitalization Threshold: SEBI proposes to increase the minimum market capitalization threshold for companies to be eligible for F&O trading from the current Rs. 100 crore to Rs. 250 crore. This move aims to enhance the liquidity of the underlying stocks and reduce the risk of manipulation.
Inclusion of Rationalized Eligible Securities: SEBI proposes to rationalize the list of eligible securities by excluding companies from the F&O segment if they meet certain criteria. For instance, companies facing insolvency proceedings, significant financial distress, or regulatory concerns will be excluded.
Designated Liquidity Options: To address the issue of low liquidity in certain F&O contracts, SEBI proposes to introduce designated liquidity options. These options will involve market participants providing guaranteed liquidity at specified prices for a certain period.
Additional Safeguards: To strengthen market integrity, SEBI proposes additional safeguards for F&O trading. These include measures to prevent excessive speculation, curb volatility, and ensure the timely resolution of disputes.

The proposed changes are subject to public consultation and may undergo further modifications before being implemented. These measures are aimed at enhancing the transparency, efficiency, and stability of the F&O segment in India.