Derivatives segment: NSE excludes ABB

The National Stock Exchange (NSE) today said it would exclude power and automation group ABB Ltd from its derivatives segment.

In a circular, the exchange said trading in derivative contracts for ABB would not be available with effect from February 1, 2013.

However, the existing unexpired contracts of expiry months November, December and January 2013 would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months, NSE said.

Last month, NSE had said that it would exclude IT firm Mphasis and diversified company Piramal Enterprises from its future and options (F&O) segment.

As per the Securities and Exchange Board of India (Sebi)s regulation, any scrip with a minimum trading volume of Rs 10 lakh and market wide position limit (MWPL) or market capitalisation of Rs 300 crore would be eligible for entry into F&O segment.

Besides, any scrip which fail to maintain a minimum MWPL requirement of Rs 200 crore cease to be in the F&O segment.

The scrip exit the derivative segment if median quarter sigma order size (MQSOS, which indicate liquidity or order size in a scrip, falls below Rs 5 lakh.

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