NSE, BSE To Exclude Tata Motors And 3 Others From F&O Contracts

Stock exchanges NSE and BSE have decided to exclude as many as four securities including Tata Motors, NBCC (India), Dish TV India and Castrol India from future and options trading from 31 January 2020, as per their separate statements. The move is expected to protect market participants from huge single-day swings.

"The existing unexpired contracts of expiry months November 2019, December 2019 and January 2020 shall be available for trading till their respective expiry and new strikes shall also be introduced in the existing contract months," the exchanges said.

Accordingly, no contracts shall be available for trading in these securities with effect from January 31, 2020, they added.

Last week BSE announced the removal of Tata Motors from its benchmark index Sensex, with effect from 23 December.

In February, capital markets regulator Sebi had proposed a slew of measures including capping the maximum daily movement of up to 20 percent for all stocks including the ones that are part of future and options (F&O) segment in order to check excessive price movements.