NSE removes Exide, Nuvama from F&O list in 2026

What NSE announced and why it matters

The National Stock Exchange (NSE) said it will exclude Futures and Options (F&O) contracts on Exide Industries Limited and Nuvama Wealth Management Limited. The decision follows revised eligibility norms issued by the Securities and Exchange Board of India (SEBI). NSE communicated the change through a circular released on Friday. The move matters because exclusion from the derivatives segment changes how traders hedge or take leveraged positions in these stocks. It also affects liquidity patterns that often develop around actively traded derivatives counters. NSE’s update clarifies what happens to existing contracts and what will stop going forward. The change is tied to SEBI’s August 2024 framework for stock eligibility in the derivatives segment.

Key points from the NSE circular

NSE stated that no new expiry month contracts will be introduced for Exide Industries and Nuvama Wealth after the current series expires. At the same time, the exchange confirmed that existing, unexpired contracts remain tradable until they expire. Specifically, contracts for May 2026, June 2026, and July 2026 will continue to be available for trading. NSE also noted that new strike prices can still be introduced for these remaining active contract months. This means options chain maintenance will continue for the live expiries, even though the contract calendar will not be extended. The circular’s operational message is that the phase-out is orderly, not abrupt.

When F&O trading will stop for Exide and Nuvama

NSE specified the effective cut-off for availability of contracts. As per the circular, “no contracts shall be available for trading in the above-mentioned securities with effect from July 29, 2026”. That date aligns with the final expiry month being July 2026. Until then, traders can continue to trade the May, June, and July 2026 contracts and manage positions into expiry. But after the July 2026 series ends, there will be no new expiries added. This is consistent with how derivatives exits are typically implemented through a run-off of existing series.

What remains tradable and what stops immediately

For traders, the most important distinction is between existing contracts and the launch of new ones. The May 2026, June 2026, and July 2026 futures and options series will remain listed and tradable until their respective expiry dates. Within those series, NSE said fresh strike prices may continue to be added, which helps the options market function as underlying prices move. What stops is the introduction of “new expiry month contracts” beyond the current series. So, there will be no August 2026 or later expiries created for these two stocks. The change affects only the derivatives segment, not the stocks’ equity listing.

Snapshot table: dates and contract availability

The SEBI August 2024 framework driving the change

SEBI issued revised eligibility norms in August 2024 for stocks to enter or remain in the F&O segment. NSE linked the Exide and Nuvama decision to this framework. The circular prescribed that a stock should be among the top 500 by average market capitalisation and traded value over six months. It also set a median quarter-sigma order size (MQSOS) threshold of Rs 75 lakh. The market-wide position limit (MWPL) threshold is Rs 1,500 crore. SEBI also set the average daily delivery value (ADDV) threshold at Rs 35 crore. Any F&O stock that fails any of the criteria is removed, although eligibility on at least one exchange suffices.

Additional SEBI checks: Product Success Framework for stock derivatives

The information provided also notes that SEBI extended the Product Success Framework to stock derivatives. This adds participation, liquidity, and activity thresholds. These parameters are reviewed monthly, as stated in the article text. The stated policy intent behind SEBI’s new norms is to curb manipulation in the F&O segment. While the circular does not detail which specific criterion Exide or Nuvama did not meet, the exit is presented as a direct outcome of the revised eligibility framework. For market participants, the practical takeaway is that the derivatives list is now more explicitly rules-driven and subject to periodic review.

Re-inclusion rules after a stock is dropped from F&O

SEBI’s framework includes restrictions on how quickly a removed stock can return to the derivatives segment. Once excluded from the F&O list, a stock cannot be considered for re-inclusion for a period of one year. The text also notes that a stock dropped from derivatives trading may become eligible again later. But it must fulfil the key eligibility criteria for six consecutive months to be reintroduced for derivatives trading. This reduces frequent in-and-out movement and forces a sustained improvement in liquidity and related metrics before re-entry.

Context: what else was said about the broader review

The provided material includes an observation attributed to Nuvama that 18 stocks are likely to be excluded under the revised thresholds. It also references changes in the methodology, including the MQSOS requirement being increased from 25 lakh to 75 lakh, MWPL revised from around Rs 500 crore to around Rs 1,500 crore, and average daily value over the last six months revised from 10 to 35 crore. These figures align with the thresholds described in the eligibility framework. The same material also indicates that SEBI’s methodology changes are focused on entry and exit criteria for the derivatives segment. Separately, it notes that SEBI announced a formal revision of thresholds for stocks entering or exiting the F&O segment.

Company-specific background mentioned in the material

For Nuvama Wealth Management, the text includes corporate history and compliance-related disclosures. It states that the demerger of the wealth management business was completed following NCLT approval on April 27, and the scheme of arrangement came into effect on May 18, 2023. The material also references an NSE penalty of Rs 1,10,000 levied on Nuvama Wealth and Investment Limited, a wholly owned material subsidiary, through a letter dated June 18, 2025. The company said there was no impact on its financials, operations, or other activities. The observation was linked to a Limited Purpose Inspection during December 2024, where reporting of the opening of a bank account was inadvertently delayed by five days.

Market impact: what changes for investors and traders

The immediate market structure impact is on derivatives availability rather than on equity trading. Derivatives users who rely on stock futures and options for hedging, position sizing, or strategies will need to manage exposures within the remaining listed expiries. Since NSE will continue to add new strikes in the active months, price discovery in the live option chains can continue until the final expiry. After July 29, 2026, the lack of listed contracts removes exchange-traded hedging routes in these counters on NSE. The circular also underlines that derivatives eligibility is now closely tied to measurable liquidity and market quality thresholds set by SEBI. For investors, the key is to separate this from company fundamentals, because the circular is framed as a norms-based derivatives eligibility action.

Analysis: why the SEBI thresholds are central to the F&O list

SEBI’s stated thresholds focus on market-cap ranking, traded value, deliverable activity, and risk controls like MWPL. The MQSOS threshold is designed to ensure that the stock can handle meaningful order sizes without sharp price impact. MWPL is relevant for limiting the scale of open positions relative to market depth. ADDV aims to ensure cash-market delivery activity is sufficiently high, which can help improve robustness of the underlying market for a derivatives product. The one-year cooling-off period and the six-month consecutive compliance requirement create a structured path for re-entry, but only after sustained eligibility. Taken together, the framework pushes the F&O list toward counters with stronger liquidity and participation metrics.

Conclusion

NSE’s circular confirms that Exide Industries and Nuvama Wealth Management will be phased out of the F&O segment, with no new expiry months introduced after the current series. May, June, and July 2026 contracts will remain tradable until expiry, and new strikes can be added in those live months. NSE has set July 29, 2026 as the date after which no contracts will be available for trading in the two securities. The action is linked to SEBI’s August 2024 eligibility framework and related monthly review mechanisms for stock derivatives. The next key operational milestone for traders is the expiry cycle leading up to the final July 2026 series.