Why DMART is not in FNO category?
Tags: trading
Published: 2023-01-27 03:13:47

---
title: Why DMART is not in FNO category?
published: true
date: 2022-05-15 07:14:24 UTC
tags: trading
canonical_url: http://avilpage.com/2022/05/why-dmart-is-not-in-fno-category.html
---

#### FNO Segment

There are 4000+ companies<sup id="fnref:wiki_nse"><a href="http://avilpage.com/2022/05/why-dmart-is-not-in-fno-category.html#fn:wiki_nse">1</a></sup> that are traded in NSE/BSE. Of these, 198 stocks are included in FNO segement<sup id="fnref:fno"><a href="http://avilpage.com/2022/05/why-dmart-is-not-in-fno-category.html#fn:fno">2</a></sup>. For these stocks, Futures & Options(FNO) contracts will be available and these stocks won't have any fixed ciruit limits.

#### FNO Reviews

On 11th April 2018, SEBI released a circular(SEBI/HO/MRD/DP/CIR/P/2018/67) on a framework<sup id="fnref:circular_framework"><a href="http://avilpage.com/2022/05/why-dmart-is-not-in-fno-category.html#fn:circular_framework">3</a></sup> for reviewing stocks in derivatives segement. Based on this framework, a stock has to meet the below criteria be added in FNO segement.

- 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.

- The stock’s median quarter-sigma order size over the last six months, on a rolling basis, shall not be less than ₹25 Lakh.

- The market wide position limit(MWPL) in the stock shall not be less than ₹500 crore on a rolling basis.

- Average daily delivery value in the cash market shallnot be less than ₹10 crore in the previous six months on a rolling basis.

If a stock is in FNO category and fails to meet this criteria, it will be removed from FNO segment.

In 2021 alone, SEBI released 6 circulars thrugh which 32 new stocks are added in the FNO segment.

#### DMART

DMART has met the above FNO criteria long back. Even after it has met the criteria, there were more than 6 reviews<sup id="fnref:c1"><a href="http://avilpage.com/2022/05/why-dmart-is-not-in-fno-category.html#fn:c1">4</a></sup><sup id="fnref:c2"><a href="http://avilpage.com/2022/05/why-dmart-is-not-in-fno-category.html#fn:c2">5</a></sup><sup id="fnref:c3"><a href="http://avilpage.com/2022/05/why-dmart-is-not-in-fno-category.html#fn:c3">6</a></sup> and suprisingly DMART was not added to the FNO segement.

There is a long discussion on Zerodha TradingQ&A forum<sup id="fnref:tqa"><a href="http://avilpage.com/2022/05/why-dmart-is-not-in-fno-category.html#fn:tqa">7</a></sup> on why DMART was not added to FNO category but no one could give any explaination.

After that, I have sent an email to SEBI & NSE seeking clarification for the same. It has been more than 6 months and they haven't responded yet. I have reached out to few people in the trading community privately to get clarification on the same. But nobody I know has any clue on this.

I am still looking for an answer. If you can shed some light, please send out a message to me. I would like to have a quick chat with you regarding the same.

Hoping to solve the mystery soon.

* * *

1. [https://en.wikipedia.org/wiki/National\_Stock\_Exchange\_of\_India](https://en.wikipedia.org/wiki/National_Stock_Exchange_of_India) [↩](http://avilpage.com/2022/05/why-dmart-is-not-in-fno-category.html#fnref:wiki_nse "Jump back to footnote 1 in the text")

2. [https://www1.nseindia.com/products/content/derivatives/equities/fo\_underlying\_home.htm](https://www1.nseindia.com/products/content/derivatives/equities/fo_underlying_home.htm) [↩](http://avilpage.com/2022/05/why-dmart-is-not-in-fno-category.html#fnref:fno "Jump back to footnote 2 in the text")

3. [https://www.sebi.gov.in/legal/circulars/apr-2018/review-of-framework-for-stocks-in-derivatives-segment\_38629.html](https://www.sebi.gov.in/legal/circulars/apr-2018/review-of-framework-for-stocks-in-derivatives-segment_38629.html) [↩](http://avilpage.com/2022/05/why-dmart-is-not-in-fno-category.html#fnref:circular_framework "Jump back to footnote 3 in the text")

4. [https://archives.nseindia.com/content/circulars/FAOP50456.pdf](https://archives.nseindia.com/content/circulars/FAOP50456.pdf) [↩](http://avilpage.com/2022/05/why-dmart-is-not-in-fno-category.html#fnref:c1 "Jump back to footnote 4 in the text")

5. [https://archives.nseindia.com/content/circulars/FAOP50414.pdf](https://archives.nseindia.com/content/circulars/FAOP50414.pdf) [↩](http://avilpage.com/2022/05/why-dmart-is-not-in-fno-category.html#fnref:c2 "Jump back to footnote 5 in the text")

6. [https://archives.nseindia.com/content/circulars/FAOP50429.pdf](https://archives.nseindia.com/content/circulars/FAOP50429.pdf) [↩](http://avilpage.com/2022/05/why-dmart-is-not-in-fno-category.html#fnref:c3 "Jump back to footnote 6 in the text")

7. [https://tradingqna.com/t/why-dmart-is-not-in-f-o/119721](https://tradingqna.com/t/why-dmart-is-not-in-f-o/119721) [↩](http://avilpage.com/2022/05/why-dmart-is-not-in-fno-category.html#fnref:tqa "Jump back to footnote 7 in the text")