MSEI F&O Circular: 6 Stocks Set for October 28 Trading

The Metropolitan Stock Exchange of India (MSEI) announced the launch of futures and options (F&O) contracts on six individual stocks effective October 28, 2026. The new contracts will include Coromandel International, City Union Bank, Data Patterns, Karur Vysya Bank, Navin Fluorine International and Syrma SGS Technology, according to the MSEI F&O circular dated October 15, 2026.

The announcement comes after approval from the Securities and Exchange Board of India (SEBI).However, trades will be subject to the stocks meeting the eligibility requirements under the October 2026 quarter-sigma calculation cycle.

The circular is a major update for derivatives traders, investors in these companies and market participants who are gearing up for the new contracts.

TL;DR

• MSEI launches futures, options contracts of 6 listed companies.

• Contracts will be available for trading from October 28, 2026, subject to eligibility requirements.

• Lot size announcement: A separate circular will be issued by MSEI on October 27, 2026.

• SEBI nod: The additions come after SEBI changed the criteria for selecting stocks for derivatives trading.

What is the MSEI F&O circular dated October 15, 2026?

The MSEI F&O circular says that the futures and options contracts on six individual securities in the equity derivatives segment of the exchange are proposed to be introduced. MSEI in circular MSE/TRD/19918/2026 has issued this announcement by the Market Operations Department.

The circular has been signed by Darshan Arwade, Assistant Vice President, Market Operations.

The launch of these contracts will increase the number of individual securities that can be traded in derivatives on MSEI, based on final eligibility criteria.

Official source: MSEI Circular No. MSE/TRD/19918/2026

MSEI F&O Circular: Full List of Six Stocks

The MSEI F&O circular identifies six companies from banking, agriculture, speciality chemicals, defence electronics and electronics manufacturing.

These companies are already listed in India's equity market. The announcement introduces additional derivatives contracts based on their shares, rather than new equity listings.

Also Read: MSEI Q1 FY 27 Results

Six Companies Included in the MSEI F&O Circular

1. Coromandel International Limited (COROMANDEL)

Coromandel International is an Indian agricultural solutions company operating in fertilisers, crop protection, specialty nutrients and allied agricultural businesses.

The company serves the farming sector through agricultural inputs, distribution and retail operations.

What investors may track: 

• Fertiliser demand, agricultural policy, raw material costs, seasonal demand and quarterly earnings.

• Its inclusion offers derivatives traders an additional way to take or hedge exposure to a business linked closely to India's agricultural economy.

2. City Union Bank Limited (CUB)

City Union Bank is a private sector bank which focuses on retail banking, small business, agriculture and commercial lending. Its financial performance is driven by credit growth, deposit mobilization, lending margins and asset quality.

What investors might watch: 

• Net interest margin, non-performing assets, deposit growth, advances, and quarterly profitability.

• The launch of F&O contracts provides another instrument to traders looking for exposure to this banking stock.

3. Data Patterns (India) Ltd (DATAPATTNS)

Data Patterns is an aerospace and defence electronics company, involved in the design and manufacture of high reliability electronic systems.

Its products are used in radar systems, electronic warfare, avionics, communications and defence test equipment applications.

What investors may watch:

• Defence order inflows, order execution, revenue growth, profitability and government procurement activity.

• The availability of derivatives may attract a bit more trading interest from investors following India’s defence electronics sector.

4. Karur Vysya Bank Ltd (KARURVYSYA)

Karur Vysya Bank is a well established private sector bank offering retail, agri, business and corporate banking services.

The bank has also expanded beyond its traditional regional markets, while building up digital banking and business lending.

What investors may track: 

• Loan growth, deposit costs, asset quality, capital adequacy and financial results.

• Its entry into the derivatives segment provides another trading and hedging instrument for participants following private sector banking stocks.

5. Navin Fluorine International Limited (NAVINFLUOR)

Navin Fluorine International operates in fluorine chemistry, including high-performance products, specialty chemicals and contract development and manufacturing services. Its products and services support applications across pharmaceuticals, agrochemicals, refrigeration and advanced materials.

What investors may track: 

• Specialty chemical demand, manufacturing capacity, new contracts, export demand and operating margins.

• New derivatives contracts could increase trading activity around earnings announcements and other significant developments.

6. Syrma SGS Technology Limited (SYRMA)

Syrma SGS Technology provides electronics manufacturing and engineering services for industries including automotive, healthcare, industrial electronics and communications. Its operations include electronic product design, printed circuit board assembly, manufacturing and testing.

What investors may track: 

• Manufacturing orders, capacity expansion, electronics demand, operating margins and production-linked growth opportunities.

• Its addition to the F&O segment gives market participants another way to trade exposure to India's electronics manufacturing industry.

Why has MSEI introduced F&O Contracts on these Six Stocks?

The announcement by MSEI has come following SEBI's eligibility framework for the entry of individual stocks into the derivatives segment. SEBI revised the stock selection criteria on August 30, 2024 vide circular SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/116.

• The revised framework puts more emphasis on liquidity, trading activity and the capacity of the underlying cash market to support derivatives positions.

• The objective is to mitigate the risks of trading derivatives on securities with insufficient market depth.

• Stock derivatives are available for speculation on future price movements, or to hedge existing positions.The use of these contracts also exposes the firm to the leverage and to potentially significant losses.

• So the selection of stock for the F&O segment is on the basis of measurable market parameters and not on the basis of the popularity or growth prospects of the company alone.

Why Is the October 2026 Eligibility Cycle Important?

Although the exchange has announced the six additions after receiving SEBI approval, the October 28 commencement remains conditional.

The stocks must satisfy the eligibility requirements of the October 2026 quarter-sigma computation cycle. If a stock fails the applicable requirements, its proposed introduction may need to be reconsidered. Investors should therefore check subsequent exchange communications before assuming that every announced contract will become available as scheduled.

What Is Quarter-Sigma Order Size?

Quarter-sigma order size is a measure of market depth. It measures the dollar value of orders needed to move a stock’s price by one quarter of its estimated standard deviation.

Normally the larger the quarter-sigma order size, the larger amount of trading value needed to move the price a certain amount. SEBI’s revised framework suggests the median quarter-sigma order size should be at least Rs.75 lakh.

This criterion matters because an illiquid underlying market may be more vulnerable to sharp price movements and manipulation.

MSEI F&O Circular-How It Can Impact Investors?

The introduction of futures and options contracts may change the way market participants trade, hedge and evaluate the six stocks. But inclusion in F&O doesn’t guarantee a higher share price.

1. More trading participation

Another way traders can express their views on where a stock will trade in the future is through new derivative contracts. It may appeal to options and futures traders rather than people buying shares outright.

2. Potential improvement in price discovery

Derivatives markets may contribute to price discovery by allowing participants to trade expectations about future prices. The extent of this contribution depends on actual volumes, order-book depth and participation.

3. Other hedging opportunities

Existing shareholders and other institutional participants may hedge some market risk exposures with derivatives. For example, futures or options may be used as part of a strategy to manage exposure to changes in the underlying share price.

Such strategies require an understanding of costs, contract specifications and possible losses.

4. Changes in trading habits

The launch of F&O could impact the trading volumes and behavior around earnings releases. However, the direction and magnitude of these changes cannot be established from the circular alone.

5. Greater attention to liquidity

A stock's eligibility for derivatives trading does not automatically mean its new contracts will be liquid. Investors should monitor actual trading volumes, open interest and bid-ask spreads after the contracts begin trading.

What Investors Should Watch Before Oct. 28?

Here’s what investors should consider before trading the newly announced contracts:

1. Final eligibility check: Confirm if the shares are still eligible under the October 2026 calculation cycle.

2. Contract lot sizes: See the official announcement of October 27.

3. Available strike prices Look at option strike schemes and expiry once published.

4. Margin requirements: Know what funds and collateral are required for the position you will be taking.

5. Market liquidity: Evaluate trading volumes, spreads and open interest once trading begins.

6. Settlement requirements : "Know physical delivery obligations particularly when rolling positions into expiry.

Summary

The MSEI F&O circular dated October 15, 2026, proposes the introduction of derivatives contracts on six Indian companies listed on the bourse.

Coromandel International, City Union Bank, Data Patterns, Karur Vysya Bank, Navin Fluorine International and Syrma SGS Technology are scheduled to enter the F&O segment from October 28, 2026.

The announcement follows SEBI approval but remains subject to the October quarter-sigma eligibility requirements. For investors, the key dates are October 27 for contract lot specifications and October 28 for the planned launch.

FAQs

MSEI F&O circular: the list has six stocks. Which are they?

The six stocks are Coromandel International, City Union Bank, Data Patterns, Karur Vysya Bank, Navin Fluorine International and Syrma SGS Technology.

When will the six new F&O stocks start trading?

These six stocks have qualified for the eligibility criteria for October 2026 quarter sigma and will be available for F&O trade from October 28, 2026.

When will MSEI declare new lot sizes for F&O?

MSEI has announced the market lot sizes will be announced in a separate circular on October 27, 2026.

Will the stock price go up after being added to f&o?

No F&O addition can provide additional trading and hedging opportunities nor can it guarantee any increase in share price.Price movements are affected by market demand, company performance and other issues.

Are these six companies new IPOs or unlisted shares?

No. All six companies are existing listed businesses. The circular concerns new futures and options contracts, not IPOs or unlisted equity shares.