A question that has been on the minds of a lot of investors is why DMart hasn’t made it to the futures and options market (F&O) yet. In the past few months, NSE has been adding a lot of stocks to the F&O segment, thanks to the recent bull market run, which pushed a lot of stocks above the eligibility threshold. NSE has four parameters for a stock, which need to be met for it to make it to the F&O market. DMart fulfills all the requirements by a big margin, which then raises a question as to why then has DMart been left out?
Eligibility requirements for a stock to be included in the F&O segment are:
1) The stock needs to be among the top 500 with respect to its market capitalisation.
2) The median quarter sigma size of orders for the stock (the order size to move the stock by a particular amount) should be above Rs 25 crore.
3) The market-wide position limit (that is free-float or non-promoter shareholding of 20 percent) should be at least Rs 500 crore.
4) Average delivery volume for the stock should be atleast Rs 10 crore.
As part of CNBC-TV18’s special offering, ‘Off the Charts’, Anuj Singhal explains the eligibility requirements in detail and decodes why DMart should have been in the F&O market.
Watch the accompanying video for more details.
To watch other videos in this series, click the Off the Charts tab below.
First Published: Dec 3, 2021 11:41 AM IST
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