The eligibility of these Adani stocks into the derivatives segments is estimated by Nuvama Institutional Equities which has created a probable list of stocks that could enter the F&O segment as per the new norms, Nuvama said, adding that the final decision lies with Sebi.
Under the new rules, the regulator has raised the median quarter sigma order size (MQSOS) over the previous six months on a rolling basis by three times to Rs 75 lakh from the existing Rs 25 lakh, citing that the average market turnover is now over 3.5 times the figure during the last review.
In a circular released on Friday, the regulator gave its rationale behind the decision, saying that the “MQSOS criteria would need to increase between 3-4 times”.
The regulator also revised a stock’s market wide position limit (MWPL) over the previous six months to Rs 1,500 crore from the existing limit of Rs 500 crore. The change comes in the wake of market capitalisation now standing at 2.8 times since the last review.Sebi has also mandated that a stock’s average daily delivery value (ADDV) in the cash market over the previous six months on a rolling basis should not be less than Rs 35 crore. The existing limit is Rs 10 crore. The ADDV has increased by over 3 times since the last review.Moreover, upon the expiry, unlike index derivatives that are cash settled, single stock derivatives are physically settled.Sebi has made no changes in the criteria related to the Average Daily Market Capitalisation and Average Daily Traded Value (ADTV) for the top 500 stocks.
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