The Securities and Exchange Board of India (SEBI) on August 30, 2024, issued the notification regarding the Review of eligibility criteria for entry/exit of stocks in the derivatives segment.
The following has been stated namely: -
• Reference is drawn to Master Circular on Stock Exchanges and Clearing Corporations, dated October 16, 2023, which states the eligibility criteria for entry/exit of stocks in the derivatives segment.
• The eligibility criteria have been amended namely: -
o The stocks meeting the below stated eligibility criteria, based on the performance of the underlying cash market, for a continuous period of six months, on a rolling basis, based on the data for the previous 6 months, shall be eligible for entry into the derivatives segment
o If a stock in the derivatives segment fails to meet any of the specified criteria, for a continuous period of three months, on a rolling basis, based on the data for the previous six months, then it shall exit from the derivatives segment.
o It has been decided to introduce additional exit criteria for stocks from the derivatives segment, by introducing PSF for single stock derivatives also.
• The Illustrations on exit timelines of stocks under various scenarios are stated in the notification.
This shall be effective from August 30, 2024.
[Notification No. SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/116]
