The suitability of these Adani stocks in the derivatives segment has been assessed by Nuwama Institutional Equities, which has drawn up a potential list of stocks that could enter the F&O segment as per the new norms, Nuwama said, adding that the final decision rests with SEBI.
Under the new rules, the regulator has increased the average quarter sigma order size (MQSOS) in the past six months from the current Rs. 25 lakhs has been tripled to Rs. 75 lakhs, citing that the average market turnover has now increased. The figure was 3.5 times during the last review.
In a circular issued on Friday, the regulator gave the rationale behind the decision and said “the MQSOS criteria will need to be increased by 3-4 times”.
The regulator has increased the stock’s market wide position limit (MWPL) in the previous six months from the current Rs. 500 crore limit increased to Rs. 1,500 crores. The change comes after the market capitalization is now 2.8 times since the last review.
SEBI has also mandated that the average daily delivery value (ADDV) of stocks in the cash market in the last six months on a rolling basis of Rs. Should not be less than 35 crores. The current limit is Rs 10 crore. ADDV has increased 3-fold since the last review.
Additionally, at expiration, unlike index derivatives which are cash settled, single stock derivatives are physically settled.
SEBI has not changed the criteria related to Average Daily Market Capitalization and Average Daily Traded Value (ADTV) for top 500 stocks.
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