Old horses bow out as Futures & Options list is reshuffled
Investors seem to have lost interest in stocks such as Wockhardt, TVS Motor, NDTV, MRF and 46 others which has prompted National Stock Exchange to exclude them from its futures and options (F&O) trading list. Devraj Uchil reports.business Updated: Apr 22, 2009 22:27 IST
Investors seem to have lost interest in stocks such as Wockhardt, TVS Motor, NDTV, MRF and 46 others which has prompted National Stock Exchange to exclude them from its futures and options (F&O) trading list.
The NSE has responded to the Securities and Exchange Board of India (SEBI) which set a minimum marketwise position limit on each share. SEBI set norms including average daily market capitalisation and average daily traded value in the previous six months for a stock to qualify for the F&O segment.
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.
“Tightening of criteria in F&O was long overdue and would bring in better quality companies into the F&O segment,” said Sudhir Nayak, Vice President of Bonanza, a broking firm.
“In terms of investor interest there would be a bit of hit on the excluded stocks but they don’t have much impact on markets,” he said.
Sameer Narayan, Head Equity, Kotak Mutual Fund said, “These stocks were excluded because they were not widely traded. These did not have any investor interest in the first place. There will be no outstanding contracts anyway.”
“The pessimism is unwarranted because the exclusion does not affect the fundamentals of the company at all,” said Siddharth Bhamre, Fund Manager, Angel Broking. “It is a good decision on part of SEBI to keep the stocks excluded for one year because on the basis of bounce back stocks should not be allowed to be included and excluded every month,” he added.