Description

IIFL Finance Ltd derivatives contracts will be discontinued from January 30, 2026, with existing contracts expiring on their respective dates through January 29, 2026.

Summary

BSE has announced the exclusion of IIFL Finance Ltd from the Equity Derivatives segment effective January 30, 2026. This action follows SEBI Circular SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/116 dated August 30, 2024 regarding eligibility criteria of stocks in derivatives. No new expiry month contracts will be generated for IIFL Finance Ltd from the discontinuation date.

Key Points

  • IIFL Finance Ltd (Scrip Code: 532636, Derivatives Asset Code: IIFL) will be removed from equity derivatives trading
  • Discontinuation effective from January 30, 2026
  • No new expiry month contracts will be created after announcement
  • Existing unexpired contracts will continue until their natural expiry
  • Decision based on review of eligibility criteria for stocks in derivatives segment

Regulatory Changes

This exclusion is implemented pursuant to:

  • SEBI Circular Ref. No: SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/116 dated August 30, 2024 regarding eligibility criteria of stocks
  • BSE Notice no 20240902-3 dated September 02, 2024 regarding review of eligibility criteria for entry/exit of stocks in derivatives segment

The stock no longer meets the eligibility criteria required for continuation in the equity derivatives segment.

Compliance Requirements

For Trading Members:

  • Note the discontinuation timeline and plan for position management
  • Inform clients holding positions in IIFL Finance derivatives
  • Ensure proper risk management for existing open positions
  • No new positions should be initiated beyond existing contract months
  • Monitor existing contracts through their expiry dates

Important Dates

  • November 24, 2025: Notice issued
  • November 27, 2025: November 2025 contracts expiry
  • December 24, 2025: December 2025 contracts expiry
  • January 29, 2026: January 2026 contracts expiry (final expiry)
  • January 30, 2026: Complete discontinuation - no contracts available for trading

Impact Assessment

Market Impact:

  • All existing F&O positions in IIFL Finance Ltd must be closed or rolled before final expiry
  • Traders and hedgers using IIFL derivatives need to find alternative hedging instruments
  • Potential increase in volatility in existing contracts as expiry approaches
  • Liquidity may decrease in later expiry months as discontinuation approaches

Operational Impact:

  • Trading members must update systems to prevent new contract generation
  • Risk management systems need adjustment for position limits
  • Client communication required for position holders
  • Market makers and arbitrageurs will exit the security

Investor Impact:

  • High impact for traders with open positions in IIFL Finance derivatives
  • Hedging strategies using IIFL F&O will need restructuring
  • Speculators must close positions within the specified timeline
  • No future trading opportunities in IIFL derivatives from January 30, 2026

Impact Justification

Complete discontinuation of F&O contracts for IIFL Finance Ltd affects all derivative traders and positions in this security, requiring immediate attention for position management and exit strategies.