Exclusion of Futures and Options Contracts on Four Securities: HUDCO, PPLPHARMA, TATATECH, TORNTPOWER

Description

NSE will not issue new F&O contracts for HUDCO, Piramal Pharma, Tata Technologies, and Torrent Power after existing contract months expire. All contracts in these securities will cease from April 29, 2026.

Summary

NSE has announced the exclusion of Futures and Options contracts for four securities — HUDCO, PPLPHARMA (Piramal Pharma), TATATECH (Tata Technologies), and TORNTPOWER (Torrent Power) — in accordance with SEBI’s eligibility criteria circular dated August 30, 2024. No new contract expiry months will be introduced for these securities once the existing contracts expire, and all F&O activity in these securities will cease from April 29, 2026.

Key Points

• New expiry month contracts will not be issued for HUDCO, PPLPHARMA, TATATECH, and TORNTPOWER after existing contract months expire.
• Existing unexpired contracts for February 2026, March 2026, and April 2026 will continue to be available for trading until their respective expiry dates.
• New strikes will still be introduced within existing (Feb, Mar, Apr 2026) contract months.
• Effective April 29, 2026, no F&O contracts will be available for trading in any of the four securities.
• This action is pursuant to SEBI Circular No. SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/116 dated August 30, 2024, on stock eligibility criteria for derivatives.

Regulatory Changes

This circular implements the provisions of SEBI’s August 30, 2024 circular on eligibility criteria for stocks in the F&O segment. Securities that no longer meet the prescribed eligibility criteria are to be phased out of the derivatives segment. NSE has identified HUDCO, PPLPHARMA, TATATECH, and TORNTPOWER as failing to meet these criteria, triggering the exclusion process.

Compliance Requirements

• All Members of NSE are required to note the exclusion and communicate this to clients holding or intending to take positions in F&O contracts of the four affected securities.
• Members must ensure clients are aware that no rollover to new expiry months will be possible after April 2026 contracts expire.
• Positions in these securities must be managed and wound down within the existing contract months (up to April 2026 expiry).

Important Dates

Impact Assessment

Market Impact (High): Traders and investors holding F&O positions in HUDCO, Piramal Pharma, Tata Technologies, and Torrent Power face a hard deadline of April 29, 2026 to exit or settle all derivative positions. No further rolling of contracts will be possible, forcing position closure.

Affected Securities:

• HUDCO — Housing & Urban Development Corporation Limited
• PPLPHARMA — Piramal Pharma Limited
• TATATECH — Tata Technologies Limited
• TORNTPOWER — Torrent Power Limited

Operational Impact: Brokers and trading members must update their systems and client notifications to reflect the unavailability of new contract months. Risk management systems should flag these securities for mandatory position wind-down. The underlying equity shares are unaffected and continue to trade normally in the cash segment.

Impact Justification

Affects F&O tradability of four actively traded securities; positions in these contracts must be wound down by April 29, 2026, requiring action from all members holding or planning positions in these derivatives.