Description
NSE announces discontinuation of new F&O contracts for IIFL Finance Limited effective January 28, 2026, while existing contracts until January 2026 will continue trading.
Summary
National Stock Exchange of India has announced the exclusion of Futures and Options contracts on IIFL Finance Limited. No new expiry month contracts will be issued after the existing contracts expire. This action is taken in reference to SEBI Circular SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/116 dated August 30, 2024 regarding eligibility criteria of stocks for derivatives trading.
Key Points
- IIFL Finance Limited (Symbol: IIFL) will not have new F&O contract months issued
- Existing unexpired contracts for November 2025, December 2025, and January 2026 will continue trading
- New strikes will continue to be introduced in existing contract months until expiry
- Complete cessation of all F&O contracts effective January 28, 2026
- Decision based on SEBI eligibility criteria for stock derivatives
Regulatory Changes
This exclusion follows SEBI’s revised eligibility criteria for stocks in the derivatives segment as outlined in SEBI Circular SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/116 dated August 30, 2024. IIFL Finance Limited no longer meets the criteria required for continuation of derivatives contracts.
Compliance Requirements
- Trading members must inform their clients holding positions in IIFL F&O contracts
- Members should ensure proper risk management for existing positions
- No new contract months should be offered to clients after January 2026 expiry
- Existing positions must be squared off or allowed to expire by their respective expiry dates
Important Dates
- November 24, 2025: Circular issue date
- November 2025: Last existing contract month (expiry continues)
- December 2025: Existing contract month (expiry continues)
- January 2026: Final existing contract month
- January 28, 2026: Complete exclusion effective date - no F&O contracts will be available for trading
Impact Assessment
Market Impact: High - This is a complete exclusion of derivatives trading for IIFL Finance Limited, affecting all traders and investors using F&O instruments for hedging or speculation on this stock.
Operational Impact: Trading members need to actively manage client positions and expectations. Clients with long-term strategies involving IIFL derivatives will need to restructure their positions.
Liquidity Impact: Expected reduction in derivatives liquidity for IIFL as the expiry dates approach, with potential impact on bid-ask spreads and price discovery in existing contracts.
Risk Management: Members and clients must reassess risk management strategies that relied on IIFL derivatives for hedging equity positions in the underlying stock.
Impact Justification
Complete exclusion of F&O contracts for a listed security affects all derivative traders and positions in IIFL, requiring immediate attention for position management and strategy adjustments.