Stock exchanges BSE and NSE in separate circulars informed that they have decided to drop three firms, namely Ujjivan Financial Services, Equitas Holdings and Century Textiles & Industries, from future and options (F&O) trading from 28 August 2020. The move is expected to protect market participants from huge single-day swings.
"The existing unexpired contracts of expiry months June 2020, July 2020 and August 2020 shall be available for trading till their respective expiry and new strikes shall also be introduced in the existing contract months," they added.
Derivatives markets or F&O segment reflects the expectation of spot prices in the future, and current price bands or circuit filters are generally not applied on them.
At present, there are over 200 stocks in the F&O segment.
The decision of the exchanges is based on SEBI's February 2019 proposal of a slew of measures including capping the maximum daily movement to up to 20 percent for all stocks, including the ones that are part of F&O segment, in order to check excessive price movements.