NSE Removes 8 Stocks from F&O Trading; Reports Strong FY25 Results
The National Stock Exchange of India (NSE) has announced significant changes to its Futures and Options (F&O) segment, while simultaneously reporting impressive financial performance for the fiscal year 2025. These developments highlight both regulatory adjustments and the exchange's robust business growth.
Major F&O Segment Restructuring
Effective August 29, 2025, NSE will exclude eight prominent stocks from its derivatives trading segment. This strategic move represents part of the exchange's regular assessment process to maintain compliance with regulatory standards and ensure appropriate market-wide position limits.
The stocks being removed from F&O trading include:
- Aditya Birla Fashion and Retail (ABFRL)
- Adani Total Gas
- CESC Limited
- Granules India
- IRB Infrastructure Developers
- Jindal Stainless
- Poonawalla Fincorp
- SJVN Limited
This exclusion is part of NSE's ongoing effort to maintain market integrity and ensure that derivative contracts meet established criteria for liquidity, volatility, and market capitalization requirements.
Exceptional Annual Performance in FY25
Despite the regulatory adjustments, NSE demonstrated remarkable financial strength in fiscal year 2025. The exchange reported a substantial 47% year-on-year increase in consolidated net profit, reaching ₹12,188 crore for the financial year ending March 31, 2025.
Key financial highlights for FY25 include:
- Consolidated total income rose 17% YoY to ₹19,177 crore
- Consolidated operating EBITDA grew 28% to ₹12,647 crore
- Standalone net profit surged 69% YoY to ₹11,246 crore
- Standalone total income increased 33% to ₹19,823 crore
- Standalone operating EBITDA rose 33% to ₹10,243 crore
Fourth Quarter Performance Analysis
While the annual results were impressive, the fourth quarter of FY25 showed some moderation in growth momentum. NSE experienced a sequential decline in quarterly earnings, with Q4FY25 net profit falling 31% quarter-on-quarter to ₹2,650 crore from ₹3,834 crore in Q3FY25.
The fourth quarter challenges included:
- Consolidated revenue from transaction charges declined 15% QoQ to ₹2,939 crore
- Reduced trading volumes across both cash and derivatives segments
- Operating EBITDA decreased 18% sequentially to ₹2,799 crore
- Earnings per share dropped to ₹10.71 from ₹15.49 in the previous quarter
Market Impact and Trading Implications
The removal of these eight stocks from the F&O segment will have several implications for market participants. Traders and institutional investors who have positions in these securities will need to adjust their strategies before the August deadline.
The affected companies span various sectors, including fashion retail, energy, infrastructure, pharmaceuticals, and financial services. This diversification suggests that the exclusions are based on specific compliance criteria rather than sector-wide concerns.
Regulatory Compliance and Market Standards
NSE's decision to exclude these stocks reflects the exchange's commitment to maintaining high standards in derivative trading. The periodic review process ensures that only securities meeting stringent criteria continue to be available for F&O trading.
Factors typically considered in such reviews include:
- Market capitalization thresholds
- Average daily trading volumes
- Price volatility patterns
- Compliance with disclosure requirements
- Overall market impact and systemic risk considerations
Upcoming Derivative Contract Changes
In addition to the stock exclusions, NSE has announced another significant change to its derivatives trading framework. Starting August 28, 2025, the exchange will shift the expiry of derivative contracts from the current schedule to Tuesdays, representing a major operational adjustment for market participants.
Market Outlook and Strategic Positioning
Despite the quarterly slowdown, NSE's strong annual performance demonstrates the resilience of India's capital markets infrastructure. The exchange's ability to maintain robust profitability while implementing necessary regulatory adjustments positions it well for continued growth.
The combination of strong financial results and proactive regulatory compliance measures reinforces NSE's role as India's leading stock exchange. The institution's commitment to market integrity while supporting business growth creates a balanced approach that benefits all stakeholders.
For investors and traders, these developments underscore the importance of staying informed about regulatory changes while recognizing the underlying strength of India's financial market infrastructure. The NSE's performance metrics reflect the continued expansion and maturation of the Indian capital markets ecosystem.
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