Mumbai, Jan. 9: The Securities and Exchange Board of India (Sebi) today announced its decision to expand the list of stocks that can be traded in the futures and options segment of the National Stock Exchange and the Bombay Stock Exchange (BSE).
The decision was welcomed by both brokers and the bourses, stating that it would help increase traded turnover.
The announcement comes after Sebi announced plans to shorten the rolling settlement cycle starting April 1 this year to two days, from the existing settlement cycle of three days. The shortening of the rolling settlement is expected to suck out more liquidity from the stock markets. As a result, the two exchanges were lobbying for the list of stocks in the F&O to be expanded.
The new list sees 31 additional stocks on the F&O segment of NSE and 21 on the BSE.
The common list of 21 additional stocks to be traded on the two bourses are Aftek Info, Geometric Software, Global Tele, HCL Technology, Hero Honda, HFCL, Hinduja Finance, Hughes Software, IPCL, KPIT, Mastek, NIIT, Polaris, Rolta, Shipping Corp., Software Solns., United Phosphorus, Visual Soft, Wipro, Zee TV and ONGC.
The remaining 10 stocks that Sebi has allowed only on the National Stock Exchange are BEL, BEML, CMC, Engineers India, Hexaware, Infotecent, ICICI Bank, National Aluminium, Silverline and Tata Elxsi.
Meanwhile, Sebi has barred three collective investment scheme (CIS) entities, including the Nagpur-based Shivaji Estate Livestock and Farms Pvt Ltd, and their concerned officials from operating in the capital markets for five years.
Touchwood Agrotech (P) Ltd and Green Earth Farms and Estate Ltd were other two entities based in Chennai against whom action has been initiated, Sebi said in its order here.
The market regulator had rejected their applications for registration and advised them to wind up existing schemes and make repayments to investors, it said.