Shares of Polycab India fell over 5% on Tuesday, October 13, after the National Stock Exchange (NSE) announced that it would discontinue futures and options (F&O) contracts on the stock from December 30, 2026. The development comes soon after the insolvency case alleging operational dues of ₹2.79 crore, in which the National Company Law Appellate Tribunal (NCLAT) has stayed an earlier order by NCLT admitting insolvency proceedings against the company.
The NSE’s decision means traders will no longer be able to trade Polycab futures and options contracts beyond the specified date. The stock’s exclusion from the derivatives segment follows its inclusion in the F&O segment in the September series of 2021.
Polycab shares fell as much as 5.3% to its day’s low of ₹7,961.10. While the stock has lost 1% in 1 month and 12% in 3 months, it has advanced in longer terms. It rose 8% in 6 months, and 6% in the last 1 year. Moreover, it surged 222% in the last 5 years, giving multibagger returns.
The stock had hit its 52-week high of ₹10,128.60 in June 2026 and its 52-week low of ₹6,660.50 in January 2026.
NSE sets December 30 deadline for Polycab F&O contracts
According to an NSE circular issued on October 12, the exchange will not introduce contracts for new expiry months in Polycab India after the existing contract months expire.
However, the October, November and December 2026 contracts will remain available for trading until their respective expiry dates. The NSE will also introduce new strike prices in the existing contract months before discontinuation takes effect.
Once the final contract expires on December 30, traders will no longer be able to trade Polycab futures and options contracts. All existing positions will have to be squared off by the maturity date of the final contract.
NCLAT stays insolvency order against Polycab India
The F&O development comes after Polycab disclosed that the NCLAT had stayed and kept in abeyance the National Company Law Tribunal’s (NCLT) October 7 order admitting the Corporate Insolvency Resolution Process (CIRP) against the company.
The insolvency petition was filed by Asier Metals Private Limited under Section 9 of the Insolvency and Bankruptcy Code (IBC), alleging operational debt of ₹2.79 crore arising from the supply of aluminium ingots.
Asier claimed that it had raised invoices worth ₹34.17 crore, against which Polycab had paid approximately ₹30.97 crore. After accounting for credit notes, refunds and other adjustments, the supplier alleged that ₹2.79 crore remained outstanding, with the default dating back to June.
Polycab disputed the claim, citing provisional billing, price adjustments, quantity discounts, detention and demurrage charges, and pending reconciliation. It also raised counterclaims, including ₹80 lakh towards detention, demurrage and material shortages.
The NCLT had concluded that the operational debt was due and payable and that a default had occurred. It admitted the insolvency application, declared a moratorium under Section 14 of the IBC and appointed Sunit Jagdishchandra Shah as interim resolution professional (IRP).
However, Polycab appealed and subsequently informed the stock exchanges that the NCLAT had stayed the NCLT order. This means the insolvency order was put on hold; it does not, by itself, mean the underlying payment dispute was finally decided in Polycab’s favour.
The company was placed under IRP Stage 0 for trading, under which trading continues at the normal pace and fresh buying is not blocked by retail brokers.
Why stocks are excluded from the F&O segment
Stocks must meet several eligibility criteria to remain in the derivatives segment, under guidelines issued by the Securities and Exchange Board of India (SEBI) and the NSE. These include liquidity measures, market-wide position limits, corporate governance considerations, insolvency proceedings, corporate restructuring and delisting-related factors.
According to the criteria outlined in the provided information, admission to the IBC framework or NCLT proceedings can result in restrictive trading conditions and make a stock ineligible for F&O trading. The stock must also maintain an average market-wide position limit (MWPL) threshold of ₹1,500 crore under revised SEBI norms.
What happens after a stock exits F&O?
Once a stock is excluded from the F&O segment, it cannot be reintroduced for 12 months. After that period, it must meet all the prescribed eligibility criteria for six consecutive months.
The exchange’s Risk Management Committee then verifies whether the stock consistently meets the relevant quantitative and qualitative parameters before standard derivatives contracts can be reintroduced.
For Polycab, the NSE’s December 30 deadline marks the end of the availability of its existing F&O contracts, even as the insolvency-related legal proceedings continue to develop.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
