Description

IRCTC derivatives contracts will be discontinued from February 27, 2026 with existing contracts expiring through February 26, 2026.

Summary

BSE has announced the exclusion of Indian Railway Catering & Tourism Corporation Ltd (IRCTC) from the Equity Derivatives segment effective February 27, 2026. This action is based on SEBI Circular SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/116 dated August 30, 2024 regarding eligibility criteria of stocks in derivatives segment. No new expiry month contracts will be generated for IRCTC derivatives.

Key Points

  • IRCTC (Derivatives Asset Code: IRCT, Equity Scrip Code: 542830) to be removed from derivatives trading
  • Discontinuation effective from February 27, 2026
  • No new expiry month contracts will be generated
  • Existing unexpired contracts will continue until their respective expiry dates
  • Action taken in reference to SEBI eligibility criteria circular and BSE Notice no 20240902-3 dated September 02, 2024

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 requirements for continuation in the derivatives segment.

Compliance Requirements

  • Trading members must prepare for the discontinuation of IRCTC derivatives
  • Members should inform their clients holding positions in IRCTC F&O contracts
  • No new positions should be initiated beyond the existing contract series
  • Members must ensure proper settlement of all existing contracts through their expiry dates
  • Risk management systems should be updated to reflect the discontinuation

Important Dates

  • December 24, 2025: Expiry of December 2025 contracts
  • January 29, 2026: Expiry of January 2026 contracts
  • February 26, 2026: Expiry of final February 2026 contracts
  • February 27, 2026: Effective date of exclusion - no IRCTC derivatives contracts available for trading

Impact Assessment

Market Impact:

  • Traders and investors with IRCTC derivatives positions will need to close or roll positions by February 26, 2026
  • Hedging strategies involving IRCTC F&O will need to be restructured
  • Liquidity in existing contracts may be affected as the discontinuation date approaches
  • Market participants using IRCTC for portfolio hedging or speculation will lose this instrument

Operational Impact:

  • Trading members need to update their systems and risk management frameworks
  • Client communication required for position holders
  • No impact on cash market trading of IRCTC equity shares
  • Potential increase in cash market volumes as derivative traders shift to underlying equity

Impact Justification

Complete discontinuation of F&O contracts for IRCTC affecting all derivative traders and positions in this actively traded stock