Wed Dec 24 04:40:00 UTC 2025: Summary:

The National Stock Exchange (NSE) will remove IRCTC Ltd. from the Futures and Options (F&O) segment, effective February 25, 2026. This means no new F&O contracts will be introduced for IRCTC after this date, and existing contracts will be phased out. Trading will be restricted to the cash market, eliminating leverage. This change is expected to reduce volatility and liquidity, and impact institutional investors’ hedging strategies. F&O trading, involving futures and options contracts, allows traders to trade quantities using leverage, a high-risk, high-reward segment compared to simply buying shares in the cash market.

News Article:

IRCTC to Exit NSE’s F&O Segment in 2026, Impacting Investors

Mumbai: The National Stock Exchange (NSE) has announced that Indian Railway Catering and Tourism Corp. Ltd. (IRCTC) will be removed from the Futures and Options (F&O) segment, effective February 25, 2026. This marks a significant development for the popular public-sector stock, affecting trading strategies and market dynamics.

The delisting is not a ban but a permanent exclusion from derivatives trading. After the specified date, no new monthly or quarterly F&O contracts for IRCTC will be introduced, and existing contracts will be gradually phased out.

What This Means for Investors:

  • Cash Market Trading Only: Following the exit, trading in IRCTC shares will be restricted solely to the cash market. Investors will only be able to buy or sell the actual shares, eliminating the use of leverage.
  • Reduced Volatility: Experts anticipate a decrease in volatility due to the absence of speculative trading common in the F&O segment. However, this could also lead to lower trading liquidity.
  • Hedging Impact: Institutional investors will no longer be able to use options or futures to hedge against potential price declines in IRCTC stock.

Understanding F&O Trading

F&O trading involves futures and options contracts, where the value is derived from an underlying asset, in this case, IRCTC shares. Futures contracts obligate the buying or selling of a stock at a predetermined price on a future date. Options contracts provide the right, but not the obligation, to buy or sell a stock at a specific price.

The removal of IRCTC from the F&O segment is expected to bring significant changes to its trading behavior, altering the investment strategies of both retail and institutional investors.

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