A STRONG MOVE FROM NSE

NSE has excluded 50 stocks from its Futures & Option segment and contracts for new expiry months in these securities will not be available for trading on expiry of existing contract months. However, the existing unexpired contracts for the month of and April, May and June 2009 would continue to be available for trading till their respective expiry and new strikes would also be introduced in these existing contract months.
We had seen huge price action in some of these stocks over a period of time. Without huge volume surge, it will create high volatility in the short run.
A stock shall be excluded from F&O if the stock’s market wide position limit is less than Rs. 60 crores and stock’s median quarter sigma over last six months shall be less than Rs. 2 lakhs for a period of 3 months.
These stocks cash market volume and F&O segment volumes are far low over a period of time. These 50 stocks options are almost illiquid. Trading volume in futures are also low. For example the volume recorded on Gitanjali Gems is mere 70 lots. Bata India 216 lots, Wockhardt 227 lots, TVS Motors 461 lots RIIL 615 lots. Many of the contracts are absolutely illiquid.
Once a stock is excluded from the F&O list, it shall not be considered for re-inclusion for a period of one year.
The eligibility criteria for inclusion of scrips in F&O segment shall be:

• The stock shall be chosen from amongst the top 500 stocks in terms of average daily market capitalisation and average daily traded value in the previous six months on a rolling basis.
• The stocks quarter sigma order size for the last six months shall be not less than Rs. 5 lakhs.
• The market wide position limit (MWPL) in the stock shall not be less than Rs. 100 crores.

Following are the stocks which will be excluded from NSE F&O segment

Sr No	Symbol	Security
1	3IINFOTECH	3i Infotech Limited
2	ALOKTEXT	Alok Industries Limited
3	AMTEKAUTO	Amtek Auto Ltd
4	APTECHT	Aptech Limited
5	ARVIND	Arvind Limited
6	BALAJITELE	Balaji Telefilms Ltd.
7	BALLARPUR	Ballarpur Industries Limited
8	BATAINDIA	Bata India Ltd
9	BIRLACORPN	Birla Corporation Ltd
10	BOMDYEING	Bombay Dyeing & Mfg Co. Ltd
11	CENTRALBK	Central Bank of India
12	DCB	Development Credit Bank Limited
13	EDELWEISS	Edelweiss Capital Limited
14	ESCORTS	Escorts Ltd
15	EVERONN	Everonn Systems India Limited
16	GDL	Gateway Distriparks Limited
17	GITANJALI	Gitanjali Gems Limited
18	GNFC	Gujarat Narmada Valley Fertilizer Co. Ltd.
19	GUJALKALI	Gujarat Alkalies and Chemicals Ltd.
20	HAVELLS	Havells India Limited
21	HCL-INSYS	HCL Infosystems Ltd
22	HINDOILEXP	Hindustan Oil Exploration Co. Ltd
23	IRB	IRB Infrastructure Developers Limited
24	JETAIRWAYS	Jet Airways (India) Ltd.
25	JSL	JSL Limited
26	KESORAMIND	Kesoram Industries Ltd.
27	KSK	KSK Energy Ventures Limited
28	KTKBANK	The Karnataka Bank Limited
29	LAXMIMACH	Lakshmi Machine Works Ltd.
30	MAHLIFE	Mahindra Lifespace Developers Limited
31	MAHSEAMLES	Maharashtra Seamless Ltd
32	MINDTREE	MindTree Limited
33	MONNETISPA	Monnet Ispat Ltd
34	MRF	MRF Ltd.
35	NBVENTURES	Nava Bharat Ventures Limited
36	NDTV	New Delhi Television Limited
37	NETWORK18	Network 18 Fincap Limited
38	NIITLTD	NIIT Limited
39	PENINLAND	Peninsula Land Limited
40	RAJESHEXPO	Rajesh Exports Ltd.
41	RIIL	Reliance Industrial Infrastructure Limited
42	SKUMARSYNF	S. Kumars Nationwide Ltd
43	SREINTFIN	SREI Infrastructure Finance Limited
44	SRF	SRF Ltd.
45	STAR	Strides Arcolab Limited
46	THERMAX	Thermax Ltd
47	TORNTPOWER	Torrent Power Limited
48	TVSMOTOR	TVS Motor Company Limited
49	UTVSOF	UTV Software Communications Limited
50	WOCKPHARMA	Wockhardt Limited