The Hindu Business Line : Satyam would be out of F&O from January 30, say bourses

Chennai, Jan. 9 After excluding Satyam Computer from the indices, the exchanges have excluded the stock from the derivative segment as well. This means the stock would not see a free fall or sharp rise from January 30.

According to a NSE circular, the last date for the expiration of F&O contract on Satyam Computer – all the three months’ series of January, February and March – would be January 29.

“No futures and options contracts will be available in the underlying Satyam Computer for trading from January 30. The methodology for position adjustments shall be separately intimated by NSCCL,” said a circular from the NSE.

It further said, the security will, however, continue to be available for trading in the capital market segment.

Similarly, the BSE will also withdraw Satyam Computer from derivative segment from January 29.

Derivative Segment

In the derivative segment, the Satyam Computer January contract closed at 23.95 against the spot close of 23.75. It, however, shed 53.05 lakh shares (or 18.45 per cent) in open interest positions. Client-wide position limit stood just 5 per cent (or 48,48,133 contracts) to the overall market-wide position limit of 9,69,62,662 contracts.

As the stock would not be traded in the derivative segment, it would attract circuit filter from January 30. According to exchanges guidelines, “No circuit filters are applicable on stocks on which derivative products are available and scrips which are liquid and included in indices on which derivative products are available.”

An NSE official said the stock would come under the 20 per cent circuit breaker from January 30.

The circuit filters are reduced in case of illiquid stocks or as a price containment measures. The circuit filters are reduced to 10 per cent or 5 per cent or 2 per cent, as the case may be, based on the criteria decided by the Surveillance Department, said the Bombay Stock Exchange.

Replacement

Meanwhile, the BSE has replaced the stock from group A list with Godrej Consumer Products from January 12.

If the BSE decides to shift the stock the trade-to-trade settlement basis, selling and buying of shares in that scrip results into giving and taking delivery of shares at the gross level and no intra day netting off and squaring off facility is permitted.

The scrip, which forms part of the “Z group”, are compulsorily settled on a trade-to-trade basis.

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