Jio Financial, Zomato can win Nifty ticket as Sebi tweaks F&O rules
Sebi approving a revision in eligibility criteria for entry and exit of stocks in the derivatives market, Jio Financial Services and Zomato have high chances of earning a seat in the bluechip Nifty50 stocks.
«If we assume Jio Financial and Zomato make it to the F&O segment before the third week of August, then there is a very high chance of them making it to the Nifty 50 in the September review,» according to an analysis by Nuvama Alternative & Quantitative Research.
While revising the thresholds for stocks entering or exiting the F&O segment, Sebi said the Median Quarter Sigma Order Size requirement over the last six months has been increased from Rs 25 lakh to Rs 75 lakh on a rolling basis. Likewise, the Market Wide Position Limit (MWPL) has been raised from Rs 500 crore to Rs 1,500 crore.
The regulator also stipulated that the Average Daily Value (ADV) over the last six months must not fall below Rs 30 crore, compared to the previous threshold of Rs 10 crore. Additionally, a PSF Framework will be used to evaluate the exit of stocks.
Nuvama said there are around 65 stocks that meet the criteria, but the final decision remains with Sebi.
«With a view to ensuring the continued development of a vibrant securities market ecosystem with appropriate regulation and investor protection, the Board has approved a revision in eligibility criteria for entry and exit of stocks in the derivatives segment of exchanges. The last revision in such selection criteria was carried out in 2018. The revised criteria are in line
