Polycab Shares Plunge 5% as NSE Axes Stock From F&O Segment Effective December 30
Defying broader domestic equity resilience, shares of wires and cables manufacturer Polycab India witnessed sharp selling pressure during Tuesday's trading session on October 13, 2026, tumbling nearly 5 percent to touch an intraday low of ₹7,993 per share. The steep downturn eroded the stock's accumulated gains for the calendar year, bringing its year-to-date advance down to roughly 4 percent as market participants reacted decisively to a regulatory mandate issued by the National Stock Exchange (NSE). In a circular released to market participants, the premier bourse confirmed that Polycab India will be delisted from the futures and options (F&O) segment starting December 30, 2026. While the exchange's notification did not detail specific regulatory infractions or single operational factors behind the exclusion, the unexpected structural shift has triggered widespread portfolio adjustments among derivative desks and institutional traders.
Expiry Roadmap: Existing F&O Contracts Safe Till December 30, No New Series to Open
To ensure an orderly unwinding of existing market commitments, the exchange outlined a phased transition timeline for active derivative positions across the counter. Open contracts in the current October, November, and December 2026 monthly expiry series will remain fully active and tradable until their respective official expiry dates, and the exchange will continue to introduce new strike prices within these established cycles as market volatility warrants. However, no fresh monthly derivative series will be issued beyond the December 2026 contracts, culminating in the complete cessation of Polycab’s futures and options trading from December 30, 2026. This exclusion requires derivative market participants, arbitrageurs, and hedgers to systematically square off or roll down their exposure over the final two months of the calendar year, directly altering institutional volume momentum on the counter.
Cash Market Equities Unaffected as Regulatory Framework and MWPL Limits Come into Focus
Addressing investor apprehensions surrounding ordinary equity ownership, market analysts emphasized that exclusion from the derivatives fold does not imply delisting from the primary cash segment of the stock exchanges. Retail and institutional holdings housed in electronic Demat accounts remain entirely unaffected, and regular spot buying and selling will proceed uninterrupted across trading terminals. Securities enter and exit the F&O basket based on rigorous quantitative liquidity criteria governed by the Securities and Exchange Board of India (SEBI) and the stock exchanges, which require a minimum Market-Wide Position Limit (MWPL) of ₹1,500 crore, sustained delivery volumes, and tight median quarter-to-date bid-ask spreads to curb price manipulation. While the loss of derivative instruments limits leveraged hedging strategies and could induce near-term multiple compression, the long-term stock trajectory will ultimately hinge on fundamental operating earnings, industrial demand, and corporate governance developments.
