Synopsis

Polycab India shares dropped 6% in two sessions after NSE announced its exclusion from the equity derivatives segment effective December 30. The move follows an insolvency petition admitted by NCLT over alleged dues of Rs 2.79 crore, which has since been stayed by NCLAT pending an October 26 hearing.

Shares of wires and cables maker Polycab India fell 4.5% to an intraday low of Rs 7,883 on Wednesday, extending losses for a second consecutive session. The stock has declined 6% after the NSE announced that it would exclude Polycab from the equity derivatives segment with effect from December 30.

The National Stock Exchange (NSE) said it will not issue contracts for new expiry months in Polycab India after the expiry of existing contract months. The existing contracts expiring in October, November and December will continue trading as usual.

NSE will also introduce new strikes in these existing contract months before the discontinuation. The stock exchange's latest decision follows its announcement that futures and options contracts for new expiry months shall not be issued upon expiration of October 2026 contracts.

Further, a 100% margin shall be levied on all existing derivative contracts with effect on a T+2-day basis, applying to all open positions as of October 13, and new positions created from October 14 onwards, according to NSE’s circular. After the expiry of existing contracts, further surveillance actions of price band/gross settlement and more as under the IBC framework shall be applicable with effect from January 1, 2027.

Polycab responds

In an exchange filing on October 13, the electrical goods maker said that the National Company Law Appellate Tribunal (NCLAT) has stayed an order by the National Company Law Tribunal (NCLT) admitting an insolvency petition against the company over alleged operational dues of Rs 2.79 crore.

The NCLT's Ahmedabad Bench passed the order on October 7 following a petition filed by Asier Metals Private Ltd under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Polycab over alleged operational dues of Rs 2.79 crore.

In its October 9 order, the NCLAT stayed the NCLT's order and directed that it be kept in abeyance until further orders. Polycab's appeal is scheduled to be heard on October 26, 2026.

Stocks can be excluded from the futures and options (F&O) segment if they fail to meet criteria prescribed by market regulator Sebi. These criteria cover several factors, including liquidity metrics, market-wide position limits and corporate restructuring.

When a company is admitted to the insolvency and bankruptcy framework, its stock is moved to a restrictive trading category, making it ineligible for trading in the F&O segment.

Polycab India shares have delivered handsome returns in excess of 200% in the last five years.

Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.

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