The National Stock Exchange of India (NSE) has announced the addition of four equities to its Futures and Options (F&O) segment, effective from the January series beginning December 31, 2025. The newly included stocks are Swiggy, Waaree Energies, Premier Energies, and Bajaj Holdings and Investment.

India’s derivatives market has expanded rapidly over the past decade, becoming one of the most actively traded globally. Entry into the F&O segment is governed by stringent eligibility norms prescribed by SEBI, designed to ensure adequate liquidity, market depth, and risk containment. Inclusion is therefore viewed not merely as an operational change, but as a signal of a stock’s evolving market maturity.

As of now, 208 stocks are available for trading in the NSE’s F&O segment, alongside index derivatives on the Nifty 50, Bank Nifty, Nifty Financial Services, Nifty Midcap Select, and Nifty Next 50. The exchange periodically reviews this universe, adding or removing securities based on quantitative thresholds.

What is changing

In a circular issued on December 18, NSE informed market participants that futures and options contracts will be introduced on four securities-Swiggy, Waaree Energies, Premier Energies, and Bajaj Holdings and Investment-starting December 31, 2025. These additions are part of the January derivatives series.

The exchange clarified that the market lot size, strike scheme, and quantity freeze limits for these contracts will be communicated through a separate circular on December 30. The applicable quantity freeze details will also be embedded in the contract file for the first day of trading.

At the same time, NSE reiterated that four stocks-Cyient, HFCL, NCC, and Titagarh Rail Systems-will be removed from the F&O segment effective the same date, reflecting the dynamic nature of the eligibility framework.

Why it matters

Inclusion in the F&O segment typically alters a stock’s trading profile. Derivative availability allows institutional investors, proprietary desks, and sophisticated traders to hedge exposures, take directional bets, and deploy arbitrage strategies. This often results in higher trading volumes and tighter price discovery in the cash market.

For Swiggy, a relatively new listing and a prominent consumer internet platform, F&O entry marks a significant milestone. It signals that the stock has met liquidity and market capitalisation benchmarks comparable with more established large-cap names. However, it also introduces greater volatility, as derivatives can amplify short-term price movements.

For Waaree Energies and Premier Energies, both linked to India’s renewable and clean energy ecosystem, derivatives inclusion underscores growing investor interest in the energy transition theme. Bajaj Holdings and Investment, a long-standing holding company with significant stakes in listed group entities, adds a more traditional flavour to the mix, potentially attracting hedging activity linked to broader Bajaj group exposures.

Eligibility framework and regulatory signals

NSE emphasised that the inclusion is strictly based on SEBI-approved criteria. These include average daily market capitalisation, average daily traded value, a minimum market-wide position limit of ₹1,500 crore, median quarter-sigma order size of at least ₹75 lakh, and average daily deliverable value of no less than ₹35 crore over the previous six months. Stocks must also rank within the top 500 by market capitalisation and traded value on a rolling basis.

The transparent articulation of these norms reinforces regulatory intent to balance market development with systemic risk management, particularly as retail participation in derivatives continues to rise.

Market and business implications

From an Indian market perspective, the move marginally broadens the derivatives universe but has sector-specific implications. Consumer internet and renewable energy stocks gaining F&O access could attract incremental institutional attention, especially from funds that rely on derivatives for portfolio hedging.

However, history suggests that F&O inclusion does not guarantee sustained price appreciation. In several cases, stocks have seen near-term volatility spikes as traders test liquidity and positioning limits. For long-term investors, derivatives entry is neutral to fundamentals but can influence sentiment and short-term flows.

Bull vs Bear scenario

In a bullish scenario, higher liquidity and institutional participation could improve valuation discovery, particularly for stocks like Swiggy and Waaree Energies, if fundamentals continue to strengthen.

In a bearish scenario, increased speculative activity could lead to sharper drawdowns during market stress, especially if earnings visibility or sector sentiment weakens.

Risks to watch

Key risks include elevated volatility post-inclusion, increased retail leverage in derivatives, and potential mispricing during the initial trading phase. For stocks exiting the F&O segment, liquidity contraction and reduced institutional activity may pose short-term challenges.