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The stock of IDFC Ltd (₹109.2) will be excluded from Nifty Financial Services index with effect from October 10. Replacing this is the stock of Multi Commodity Exchange of India (MCX) (₹5,805.2).
Also, the futures and options (F&O) contracts on IDFC will also be excluded with effect from October 10. That is, the stock is being discontinued from the derivatives segment.
Therefore, all existing monthly contracts with IDFC as underlying, whose expiry dates are after October 9, shall expire on October 9.
The settlement price for these contracts for the purpose of final settlement will be the settlement price of the stock of IDFC in the capital market on October 9.
The pay in and pay out of the final settlement of all futures and options contracts on IDFC shall be done on October 10 i.e. T+1 day. On expiry, the relevant contracts will result in physical settlement.
Note that the obligation arising through F&O settlement shall be netted through the obligation in the cash market. As mentioned above, the settlement will happen on October 10.
Therefore, traders who hold F&O positions on IDFC should take note of it. We suggest F&O traders to close out the existing trades if any before expiry and avoid physical settlement unless your actual requirement is for the same.
In a separate announcement, the NSE has announced a change in lot size of 43 stocks in the F&O segment. The new lot size will be effective from November 1.
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