Why are F&O contracts not displayed for a particular stock?
Why are F&O contracts not displayed for a particular stock? Find a clear answer in this FAQ by 021 Trade.
Futures & Options (F&O) trading is available only for a select list of securities approved by the stock exchanges. The eligibility of stocks and indices for trading in the derivatives segment is determined based on criteria defined by the Securities and Exchange Board of India (SEBI) through various circulars issued from time to time.
The most popular indices for F&O trading include Nifty 50 and Sensex. Other active indices include FinNifty, BankNifty, Nifty Midcap Select, Nifty IT, Nifty 200, and Nifty Oil & Gas, among others.
Brief Overview of Top Indices in India
- Nifty 50: A benchmark index representing the top 50 companies listed on the NSE
- Sensex: The benchmark index of the BSE, representing the top 30 companies
- Nifty Bank: Tracks the performance of major banking stocks in India
- Nifty Midcap Select: Focuses on liquid mid-cap companies
- Nifty IT: Tracks the performance of leading IT companies
- Nifty Metal: Represents the performance of metal sector companies
- Nifty 200: Includes the top 200 companies listed on the NSE
- FINNIFTY (Financial Nifty): Tracks the performance of financial sector stocks
- Nifty Oil & Gas: Tracks the performance of the oil and gas sector
Why Some Stocks Are Not Available in F&O
If you are unable to find an F&O contract for a particular stock, it may be because the stock has not yet qualified for trading in the derivatives segment.
The Securities and Exchange Board of India (SEBI) has laid down strict eligibility criteria that stocks must meet to be included in the F&O segment. Only those securities that satisfy these requirements are approved for derivatives trading.
Reference
For detailed eligibility criteria, please refer to the official NSE link:
https://www.nseindia.com/products-services/equity-derivatives-selection-criteria
