Description

Four securities - CYIENT, HFCL, NCC, and TITAGARH RAIL SYSTEMS - will be discontinued from trading in Equity Derivatives segment effective December 26, 2025.

Summary

BSE has announced the exclusion of Futures and Options contracts for four securities from the Equity Derivatives segment effective December 26, 2025. This action follows SEBI Circular SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/116 dated August 30, 2024 regarding eligibility criteria of stocks. No new expiry month contracts will be generated for these securities after the discontinuation date.

Key Points

  • Four securities will be discontinued from Equity Derivatives trading: CYIENT LIMITED (CYTL/532175), HFCL LIMITED (HFCL/500183), NCC LIMITED (NCCL/500294), and TITAGARH RAIL SYSTEMS LIMITED (TRSL/532966)
  • Discontinuation effective from December 26, 2025
  • No new expiry month contracts will be generated for these securities
  • Existing unexpired contracts for October, November, and December 2025 will expire on their scheduled dates
  • Action taken pursuant to review of eligibility criteria for entry/exit of stocks in derivatives segment

Regulatory Changes

This circular implements SEBI’s eligibility criteria framework outlined in SEBI Circular Ref. No: SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/116 dated August 30, 2024 and BSE Notice no 20240902-3 dated September 02, 2024. The four securities no longer meet the eligibility requirements for continued trading in the derivatives segment.

Compliance Requirements

  • Trading members must inform their clients about the discontinuation of derivatives contracts for these four securities
  • All open positions in these securities must be closed or allowed to expire by their respective expiry dates
  • No fresh positions should be initiated in far-month contracts that would extend beyond December 24, 2025
  • Trading members should adjust their risk management and margin requirements accordingly

Important Dates

  • October 30, 2025: Expiry of October 2025 contracts for the four securities
  • November 27, 2025: Expiry of November 2025 contracts for the four securities
  • December 24, 2025: Expiry of final December 2025 contracts for the four securities
  • December 26, 2025: Effective date of discontinuation - no contracts available for trading after this date

Impact Assessment

The exclusion of these four securities from the derivatives segment will significantly impact traders and institutional investors holding positions in these contracts. Market participants must plan their exit strategies for existing positions before the final expiry date. The discontinuation may lead to reduced liquidity in the affected contracts as the expiry dates approach. Traders using these derivatives for hedging purposes will need to identify alternative hedging instruments. The move aligns with SEBI’s objective of maintaining robust eligibility standards for derivatives trading.

Impact Justification

Complete discontinuation of derivatives trading for four securities affects traders and market participants with positions in these contracts. High impact due to mandatory position closure by December 2025.