YES Bank, Jio Financial, Adani Green, Paytm, RVNL, IRFC shares may see F&O inclusion

YES Bank Ltd, Jio Financial Services Ltd (JFS), Adani Green Energy Ltd, One 97 Communications Ltd (Paytm), Rail Vikas Nigam (RVNL) and IRFC are among a dozen of stocks that could enter the futures and options (F&O) segment if the proposed revision in eligibility criteria for F&O stock selection is applied, Nuvama Institutional Equities said in a note.

The market regulator Sebi has come out with a consultation paper to seek comments and inputs from all stakeholders on updating eligibility criteria of stock derivatives (futures and options or F&O) in line with the market growth. Derivatives contracts  on  stocks  can  be  traded  on recognized  stock exchanges  only  if  the  underlying  stocks  satisfy certain objective criteria. Such criteria were  last  reviewed in 2018.

"Considering the implications of the said matter on market participants, public comments are invited on the proposal. Comments may be sent to SEBI, latest by June 19, 2024. Post which they will review and should communicate the possible changes in few weeks," Nuvama said.

Zomato Ltd, YES Bank, Jio Financial, NHPC, Adani Green Energy, IRFC, Varun Beverages, Union Bank, Adani Total Gas Ltd, BSE Ltd and Adani Energy Solutions Ltd are seen in the probable list of stocks that could enter the F&O segment if they meet the proposed criteria, though the final discretion is with Sebi, Nuvama said.

Other stocks in the probable list includes Paytm, LIC, Avenue Supermarts, JSW Energy, Max Healthcare, Bank of India, Ircon International and Mazagon Dock, among others.

Stocks that could face removal from the F&O segment if the proposed criteria are implemented with base case changes in any one of the criteria included Abbott India, Atul, Balrampur Chini, Bata, Berger Paints, Mahanagar Gas, Torrent Pharma, Deepak Nitrite and Granules India among others.

Below are the proposed eligibility criteria: