SEBI Makes 45 New Additions in the F&O Including Zomato, IRFC and Yes Bank

The financial market continues to evolve and expand as more securities gain eligibility for derivatives trading. In line with the stock selection criteria outlined by the Securities and Exchange Board of India (SEBI) and pursuant to approval granted by SEBI under circular no. SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/116 dated August 30, 2024, members are hereby informed that futures and options (F&O) contracts will be introduced on 45 additional securities starting November 29, 2024.

This marks a significant development aimed at enhancing liquidity and offering more hedging opportunities to traders and investors.

What are Futures and Options?

Futures and options (F&O) are types of derivative contracts that allow investors to speculate on or hedge against the price movements of an underlying asset. Futures contracts obligate buyers and sellers to transact a specified asset at a future date for a predetermined price.

Options, on the other hand, grant the right (but not the obligation) to buy or sell an asset at an agreed-upon price before the contract expires. The inclusion of new securities in the F&O segment allows investors to access a broader range of trading and investment options, fostering a more dynamic and competitive derivatives market.

The selection of these securities for the F&O segment is based on SEBI’s specific criteria, which assess factors such as liquidity, trading volumes, and market capitalization. This ensures that only actively traded and liquid stocks are introduced in the derivatives segment, maintaining market stability and ensuring that participants have ample liquidity for both entering and exiting trades.

The 45 securities approved by SEBI will offer increased opportunities for portfolio diversification and risk management, aligning with SEBI’s commitment to promoting a transparent and efficient financial market ecosystem.

The F&O contracts on these 45 securities will be available for trading from November 29, 2024. This rollout provides traders and investors sufficient time to prepare for the new opportunities.

S.No.	Symbol	Security Name
1.	ADANIENSOL	Adani Energy Solutions Limited
2.	ADANIGREEN	Adani Green Energy Limited
3.	ANGELONE	Angel One Limited
4.	APLAPOLLO	APL Apollo Tubes Limited
5.	ATGL	Adani Total Gas Limited
6.	BANKINDIA	Bank of India
7.	BSE	BSE Limited
8.	CAMS	Computer Age Management Services Limited
9.	CDSL	Central Depository Services (India) Limited
10.	CESC	CESC Limited
11.	CGPOWER	CG Power and Industrial Solutions Limited
12.	CYIENT	Cyient Limited
13.	DELHIVERY	Delhivery Limited
14.	DMART	Avenue Supermarts Limited
15.	HFCL	HFCL Limited
16.	HUDCO	Housing & Urban Development Corporation Limited
17.	INDIANB	Indian Bank
18.	IRB	IRB Infrastructure Developers Limited
19.	IRFC	Indian Railway Finance Corporation Limited
20.	JIOFIN	Jio Financial Services Limited
21.	JSL	Jindal Stainless Limited
22.	JSWENERGY	JSW Energy Limited
23.	KALYANKJIL	Kalyan Jewellers India Limited
24.	KEI	KEI Industries Limited
25.	KPITTECH	KPIT Technologies Limited
26.	LICI	Life Insurance Corporation Of India
27.	LODHA	Macrotech Developers Limited
28.	MAXHEALTH	Max Healthcare Institute Limited
29.	NCC	NCC Limited
30.	NHPC	NHPC Limited
31.	NYKAA	FSN E-Commerce Ventures Limited
32.	OIL	Oil India Limited
33.	PAYTM	One 97 Communications Limited
34.	POLICYBZR	PB Fintech Limited
35.	POONAWALLA	Poonawalla Fincorp Limited
36.	PRESTIGE	Prestige Estates Projects Limited
37.	SJVN	SJVN Limited
38.	SONACOMS	Sona BLW Precision Forgings Limited
39.	SUPREMEIND	Supreme Industries Limited
40.	TATAELXSI	Tata Elxsi Limited
41.	TIINDIA	Tube Investments of India Limited
42.	UNIONBANK	Union Bank of India
43.	VBL	Varun Beverages Limited
44.	YESBANK	Yes Bank Limited
45.	ZOMATO	Zomato Limited

The specifics concerning the market lot size, scheme of strike prices, and the quantity freeze limits for these securities will be disclosed to members in a follow-up circular on November 28, 2024. The quantity freeze limit helps in controlling extreme price movements by limiting the number of contracts an individual can trade in a single transaction.

The addition of these securities will contribute to market liquidity. By expanding the universe of tradable F&O securities, investors can look forward to more robust hedging tools for managing price risks associated with these securities.

With these securities now accessible in the derivatives market, investors may employ more sophisticated trading strategies to capitalize on market trends. This can include strategies such as covered calls, protective puts, and long-short trades, allowing investors to mitigate risk while potentially enhancing returns.

The introduction of F&O contracts on these 45 securities is expected to strengthen the derivatives market’s depth and contribute positively to market stability by offering a broader choice of assets for hedging and speculative purposes. Market participants are encouraged to review the specifications released on November 28, 2024, and adjust their trading and risk management strategies accordingly.

This initiative aligns with SEBI’s broader vision of advancing market participation and fostering an inclusive financial landscape that benefits investors of all types. By expanding the scope of F&O trading, SEBI is also enabling greater market resilience, particularly in turbulent market conditions, and providing a channel for investors to balance their portfolios against adverse price movements.

Members and investors should stay informed about further announcements regarding these securities and evaluate their potential impact on trading portfolios.

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