NSE drops Exide, Nuvama from F&O by July 2026

What NSE announced on May 22, 2026

The National Stock Exchange (NSE) has announced the upcoming exclusion of two stocks from its Futures and Options (F&O) segment. In an official circular dated May 22, 2026, the exchange said fresh derivative contracts will no longer be issued for Exide Industries Ltd and Nuvama Wealth Management Ltd. The decision is linked to the revised eligibility criteria for stock derivatives set by the Securities and Exchange Board of India (SEBI). NSE’s circular states that this is a direct enforcement of the SEBI framework governing which stocks can enter and remain in the F&O segment.

The announcement matters for traders who use derivatives for hedging or speculative strategies, because it changes the availability of future expiry cycles. For investors, the change does not affect cash market trading in these shares. The exclusion is specifically about stock derivatives availability on the exchange.

Which stocks are being removed from the derivatives list

NSE’s circular names two securities:

• Exide Industries Ltd
• Nuvama Wealth Management Ltd

The exchange clarified that it will stop introducing new expiry month contracts after the current series. In effect, the pipeline of future-month contracts will end after the remaining active months expire. This means the stocks will cease to be available for new derivatives expiry cycles beyond the current set.

What happens to existing F&O positions and current series

NSE has made it clear that existing unexpired contracts remain tradable until their respective expiries. Specifically, contracts for the expiry months May 2026, June 2026, and July 2026 will continue to be available for trading. This is an important operational detail because it avoids abruptly shutting down open positions.

The circular also states that “new strikes would also be introduced in the existing contract months.” So, while no new expiry cycles will be launched, traders may still see additional strike prices added for the currently active months. The exchange’s message to market participants is that they do not need to panic if they already hold positions in these contracts.

The key date: derivatives trading ends from July 29, 2026

NSE has provided a clear effective date. As per the circular, “no contracts shall be available for trading in the above-mentioned securities with effect from July 29, 2026.” That date marks the point from which the two stocks will effectively be unavailable for trading in the F&O segment.

The operational implication stated in the provided information is that traders will not be able to create new positions in these stocks in the F&O segment after the effective date. Trading would then be limited to the cash market for those securities.

Why NSE is acting: SEBI’s revised eligibility norms

NSE linked the move to SEBI’s circular framework on derivatives eligibility. The exchange referenced SEBI Circular Ref. No: SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/116 dated August 30, 2024. The stated purpose of these norms is to govern stock eligibility for entry and continued inclusion in the derivatives segment.

The article text also notes that SEBI’s new norms aim to curb manipulation in the F&O segment. NSE’s exclusion of the two stocks is positioned as an implementation of this eligibility regime rather than a discretionary action by the exchange.

What SEBI’s framework requires for F&O eligibility

The August 2024 framework (as described in the provided text) sets multiple thresholds for a stock to enter or remain in the F&O segment. It prescribes that a stock should be among the top 500 by average market capitalisation and traded value over six months. It also sets quantitative thresholds related to order size, position limits, and delivery value.

SEBI’s criteria listed in the text include:

• Median quarter-sigma order size (MQSOS) threshold: Rs 75 lakh
• Market-wide position limit (MWPL): Rs 1,500 crore
• Average daily delivery value (ADDV): Rs 35 crore

The text also states that eligibility on at least one exchange suffices for continued eligibility, and that SEBI extended the Product Success Framework (PSF) to stock derivatives with participation, liquidity, and activity thresholds reviewed monthly.

Exit and re-entry rules: one-year bar and six-month test

Beyond the immediate exclusion, the framework includes rules for how a stock exits and how it can return. The text states that stocks that fail to meet the criteria for three consecutive months will be removed from the derivatives segment, although existing contracts remain valid until expiry.

Once excluded, a stock cannot be considered for re-inclusion for a period of one year from the date it was last traded in this segment. The text adds that a dropped stock may become eligible again, but it must fulfil the key eligibility criteria for six consecutive months to be reintroduced for derivatives trading.

Summary table: what changes for Exide and Nuvama

Market impact: what it changes for traders and investors

For derivatives traders, the most immediate change is the halt in new expiry month listings beyond the current May, June, and July 2026 series. Strategies that rely on rolling positions into further months will have to adjust because new expiry cycles are halted for these two stocks. The ability to trade existing contracts until expiry, and the continued introduction of new strikes in active months, helps provide a transition period.

For cash market investors, the update does not stop trading in the underlying shares. The text indicates that after the effective date, trading would be limited to the cash market for those securities. The regulatory backdrop is that the derivatives eligibility framework is designed to tighten participation, liquidity, and activity standards, with monthly review elements under the Product Success Framework.

Why this matters: enforcement of monthly-reviewed eligibility standards

The key takeaway from NSE’s circular is that derivatives availability is increasingly tied to rule-based eligibility checks rather than being a static list. SEBI’s framework sets multiple numeric thresholds and a review process, and the exit rule triggers when criteria are not met for three consecutive months. In that context, NSE’s action on Exide Industries and Nuvama Wealth Management shows how the framework can lead to removal while still allowing a defined runway for existing contracts.

The re-entry rules are also significant. The one-year cooling-off period, followed by the requirement to meet criteria for six consecutive months, makes re-inclusion possible but structured. This reduces the likelihood of frequent add-and-drop cycles and aligns derivatives inclusion with sustained cash-market metrics.

Conclusion

NSE’s May 22, 2026 circular sets out a clear timeline for the exclusion of Exide Industries and Nuvama Wealth Management from the F&O segment, with derivatives contracts ending from July 29, 2026. Existing May, June, and July 2026 contracts will remain tradable until expiry, and new strikes can still be introduced in those months. The move follows SEBI’s August 30, 2024 eligibility framework, including rules on removal after three consecutive months of failed criteria and a one-year bar before re-inclusion can be considered.