Why Dmart is not in F&O

DMart is one of the heavyweights in its sector and its trading volume on NSE are very good.
Yet, I see many stocks that are less worthy being inducted in F&O and Dmart being ignored regularly.
I am wondering whats the logic used by NSE in deciding to exclude a stock from F&O list.

Maybe if DMART is introduced in F&O, it would also have to be included in the Nifty 50 which NSE may not want due to the valuations. I’m speculating.

The stock shall be chosen from amongst the top 500 stocks in terms of average daily market capitalization and average daily traded value in the previous six months on a rolling basis.

More details here : https://www1.nseindia.com/products/content/derivatives/equities/selection_criteria.htm

Is that considered for including it in derivatives ?

Not really but the reason DMART is not in the Nifty 50 is because it is not a part of F&O.

Ok, but why is dmart not in derivative ? (Vice versa)

1 Like

I checked the criteria for a stock to be considered for F&O and still not making any sense!!
Its valuation is comparable to any of the Nifty 100 (if not Nifty 50) stocks.

A stock need not be a part of Nifty 50 to be considered for F&O.

2 Likes

I know. I meant that the stock must be in F&O for it to be included in the Nifty 50.

Obviously, Nifty 50 has only 50 companies, where as there are about 172 stocks that are in derivatives segment.

DMART is not in FnO as Dhamani didn’t approved for its inclusion. He knows that if its included in Fno, prices will be not so much moving. Also it seems he still holds majority of the shares more than 75%.

Ohh. I didn’t know that exchanges need to ask promotor’s consent.

Btw, why will the underlying not move because it’s in FNO ? The only thing is that there no circuit limits for FNO stocks.

Just curious, where did you get the info that promotor did not want it to be included in derivatives ?

1 Like

It was asked many times and Dhamani denied it.

1 Like


This was on may 2021
nothing happened :slight_smile:

I don’t think its up to to Mr Dhamani to decide if his company can be added to F&O. Even if its true, how would adding a stock to F&O will reduce the price moment?

Yes, I wonder the same. Can any pro clear this question ?
Also, IDK how a stock price cannot move higher when its in derivatives.
Lets take divis lab as an example,


The price is going to the sky! and it’s in derivatives ? What is restricting it from not going up ?

Just curious, where did you get this info ? Source ?

1 Like

As per SEBI circular SEBI/HO/MRD/DP/CIR/P/2018/67, a stock has to meet the following criteria for 6 months to include in it FNO.

i)The stock shall be chosen from amongst the top 500 stocksin terms of average daily market capitalization and average daily traded value in the previous six months on a rolling basis’,

(ii)The stock’s median quarter-sigma order size overthe last six months, on a rolling basis, shall not be less than₹25 Lakh,

(iii)The market wide position limit in the stock shall not be less than ₹500 crore on a rolling basis,and

(iv)Average daily deliveryvalue in the cash market shallnot be less than ₹10 crore in the previous six months on a rolling basis.

Ref: SEBI | Review of Framework for Stocks in Derivatives Segment

CNBC-TV18 on Twitter: “#CNBCTV18Clutterbreakers | One of the burning questions over the past year has been that why #DMart has not made it to #Nifty yet. It meets almost every criteria, except that it’s not in F&O. #OffTheCharts with @_anujsinghal https://t.co/W1RQvpzet5” / Twitter

1 Like

Basically no one knows the reason :smiley: