Polycab India Share Price Falls 4% After NSE F&O Exit; 100% Margin To Kick In From October 14
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Polycab India came under selling pressure in early trade as changes to derivatives trading weighed on the stock. Existing F&O contracts will run until expiry, while fresh expiry-month contracts will be discontinued.
Shares of Polycab India fell nearly 4% in early trade on Tuesday, October 13, after the National Stock Exchange (NSE) announced that the stock will exit the futures and options (F&O) segment following insolvency proceedings against the company.
At around 9:16 am, Polycab India shares were trading at ₹8,071 on the NSE, down ₹334 or 3.97% from the previous close of ₹8,405.
The fall came after NSE said Polycab will not have any F&O contracts available for trading from December 30, 2026. The exchange will stop introducing new expiry-month contracts after the October contracts expire, while the existing October, November and December contracts will be allowed to run until their respective expiries.
The exchange has also tightened trading requirements for the stock, with 100% margin applicable to existing open derivative positions and new positions created from October 14.
The NSE action followed Polycab's inclusion under the Insolvency and Bankruptcy Code (IBC) framework after the National Company Law Tribunal (NCLT) admitted an insolvency petition against the company. Polycab has since challenged the order and secured a stay from the National Company Law Appellate Tribunal (NCLAT).
Why Polycab India Shares Fell Today
The developments around Polycab began after the Ahmedabad Bench of the NCLT admitted an insolvency petition against the wires and cables maker over an alleged operational debt of ₹2.79 crore.
The admission brought the stock under NSE's framework for companies undergoing insolvency proceedings, triggering changes to the way its derivatives contracts will trade.
For Polycab, this means the existing October, November and December F&O contracts can continue until expiry, but the exchange will not introduce fresh contracts for subsequent expiry months. From December 30, Polycab will no longer have F&O contracts available for trading.
The immediate impact for derivatives traders comes from the margin requirement. NSE has prescribed 100% margin for open positions as well as fresh positions from October 14, increasing the amount traders need to put up against their Polycab derivative positions.
After the existing contracts expire, additional surveillance measures prescribed under the IBC framework are also set to apply from January 1, 2027.
NCLAT Stays Insolvency Proceedings Against Polycab India
Polycab, meanwhile, has received interim relief in the underlying insolvency case.
The company challenged the NCLT order before the NCLAT, which stayed the insolvency proceedings against Polycab pending further orders. The legal proceedings, therefore, remain separate from the trading changes already announced by NSE.
The combination of the insolvency-related developments and NSE's decision on derivative contracts weighed on the stock as trading opened on Tuesday.
Polycab India shares were down 3.97% at ₹8,071 at around 9:16 am, after closing the previous session at ₹8,405.
The company is also approaching its September-quarter earnings. Polycab's board is scheduled to meet on October 15 to consider and approve the financial results for the quarter and half-year ended September 30, 2026.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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