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Polycab India Shares Fall After NSE Announces Derivatives Exclusion Amid Insolvency Proceedings
Shares of Polycab India fell over 5% intraday on October 13 after the National Stock Exchange announced that the company would be excluded from the equity derivatives segment under its insolvency framework. The move follows an insolvency admission order by the National Company Law Tribunal, which has since been stayed by the National Company Law Appellate Tribunal. Brokerage Motilal Oswal also flagged the possibility of Polycab's removal from MSCI indices.
By Finblage Editorial Desk
6:40 pm
13 October 2026
Shares of Polycab India declined over 5% to an intraday low of Rs 7,995 on the National Stock Exchange on October 13 after the exchange announced the company's exclusion from the equity derivatives segment under the Insolvency and Bankruptcy Code framework. At 11:20 am, the stock was trading 3% lower at Rs 8,156 per share. Trading activity increased sharply, with more than 500,000 shares changing hands, nearly five times the volume recorded at the same time on the previous trading day.
The NSE stated that no new futures and options contracts for Polycab India would be introduced after the October contracts expire. Existing October, November and December contracts will remain available until their respective expiry dates, with derivatives trading in the stock scheduled to cease from December 30.
The decision follows insolvency proceedings initiated against the company. However, the National Company Law Appellate Tribunal (NCLAT) has stayed the order admitting Polycab India into the corporate insolvency resolution process.
In an exchange filing, Polycab India said the NCLAT had stayed and kept in abeyance the October 7 order passed by the National Company Law Tribunal (NCLT), Ahmedabad Bench. The order had admitted insolvency proceedings against the company in a case filed by Asier Metals Pvt. Ltd. concerning an alleged operational debt of Rs 2.8 crore.
Despite the appellate tribunal's intervention, the NSE's derivatives exclusion announcement triggered selling pressure in the stock. The development highlights how insolvency-related proceedings can affect market participation and trading eligibility even when the underlying admission order is subject to a stay.
Separately, brokerage Motilal Oswal indicated that Polycab India could face removal from MSCI indices because MSCI's policy provides for the exclusion of stocks undergoing insolvency proceedings. According to the brokerage, existing index constituents subject to insolvency proceedings are placed on an ineligible alert list and deleted on the last business day of the month, as reported by Informist.
The potential index exclusion could add to near-term uncertainty for the stock, particularly if it leads to changes in institutional portfolio allocations. Investors will continue to monitor developments in the insolvency case, the implementation of the NSE's derivatives restrictions and any subsequent decision regarding MSCI index eligibility.
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