News

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) rose in early trade on Tuesday after the National Stock Exchange announced that the stock will be removed from the Futures and Options segment from February 25, 2026.

IRCTC shares were trading at Rs 682.75 at 10:53 am, up Rs 1.10, or 0.16 per cent. The stock has gained about 2 per cent over the past five sessions, but is down nearly 10 per cent over the last six months.

The move follows the Securities and Exchange Board of India’s (Sebi) tighter eligibility norms for derivatives trading. The revised rules require higher thresholds for liquidity, average daily delivery value and market-wide position limits. IRCTC no longer meets these updated criteria.

The exchange clarified that existing F&O contracts for December 2025, January 2026 and February 2026 will remain available for trading until their respective expiries. However, no new derivative series will be introduced beyond these contracts.

The announcement has led to a spike in trading activity as market participants adjust or unwind their positions ahead of the stock’s eventual exit from the derivatives segment.

For traders, the implications are significant. Once IRCTC exits the F&O segment, leverage-based strategies will no longer be possible. This will make large directional bets and hedging strategies more difficult.

The disappearance of options trading will also reduce liquidity from derivatives participants. Over time, this may lower intraday volatility, but it will also limit short-term trading opportunities that derivatives traders typically seek.

In the cash market, IRCTC continues to remain a monopoly player in online railway ticketing, catering and tourism services. The company is debt-free and has a stable financial profile.

The removal from the F&O segment does not change the company’s fundamentals. However, it does alter the way traders and investors engage with the stock.