New Delhi — Shares of Polycab India fell sharply Wednesday after the National Stock Exchange (NSE) announced that the electrical equipment manufacturer’s stock would be removed from its equity derivatives segment later this year.
The company’s shares dropped as much as 5.02% to an intraday low of 7,845 rupees on the Bombay Stock Exchange (BSE) during morning trading, extending losses from the previous session.
Polycab shares had also declined approximately 5% Tuesday following the exchange’s announcement that new derivatives contracts would no longer be available for trading beginning December 30.
Under the NSE’s decision, no new monthly expiry contracts will be introduced once the existing contracts expire.
However, outstanding derivatives contracts expiring in October, November and December 2026 will remain available for trading until their respective expiration dates. The exchange will also continue introducing new strike prices for contracts within those existing expiration months.
According to reports, additional market surveillance measures, including price bands and gross settlement requirements under the Insolvency and Bankruptcy Code (IBC) framework, are expected to take effect January 1, 2027, following the expiration of existing contracts.
The exchange’s decision follows earlier circulars issued on August 7 and October 9 concerning securities covered by the IBC framework.
The developments come amid a legal dispute involving Polycab and insolvency proceedings initiated against the company.
Polycab previously disclosed that the National Company Law Appellate Tribunal (NCLAT) had stayed an October 7 order issued by the Ahmedabad bench of the National Company Law Tribunal (NCLT).
The original tribunal order admitted insolvency proceedings against Polycab over an alleged operational debt of 27.9 million rupees claimed by Asier Metals Private Limited.
The appellate tribunal’s stay temporarily halted the operation of that order, although the exchange’s derivatives restrictions have continued to weigh on investor sentiment.
Polycab shares have traded between a 52-week low of 6,660.50 rupees and a high of 10,128.60 rupees on the BSE.
The latest decline reflects continued pressure on the stock as investors assess the implications of its removal from derivatives trading and the ongoing insolvency-related legal proceedings. (Source: IANS)
