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NSE Expands Futures & Options Universe to Include Bajaj Holdings & Swiggy

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  Published in Stocks and Investing on Thursday, December 18th 2025 at 13:19 GMT by moneycontrol.com
      Locale: Delhi, INDIA

Bajaj Holdings, Swiggy and Two Others to Join NSE’s Futures & Options List from December 31

On 27 December 2023, the National Stock Exchange (NSE) confirmed that Bajaj Holdings & Investment Ltd. (BHIL) and Swiggy Inc. will be added to the exchange’s Futures & Options (F&O) list, effective from 31 December 2023. This marks the fourth addition in a series of incremental changes that the NSE has been implementing to widen the universe of stocks eligible for derivatives trading. The move comes after a comprehensive review of market‑capitalization, free‑float, and liquidity criteria that the exchange follows when deciding which securities to place on the F&O list.

What the F&O List Is and Why It Matters

The F&O list is essentially a catalog of stocks that investors can trade using derivatives contracts—futures and options. While equities can be traded on the NSE’s spot platform, only those on the F&O list can be used for hedging or speculative positions through contracts that mature on specific dates. Historically, the F&O universe has been capped at around 500 companies, comprising the largest and most liquid firms on the Indian market. This limitation has often been a bottleneck for market participants who wish to hedge exposure to a broader set of names.

By adding new names, the NSE aims to create a more diversified derivatives market that can accommodate institutional and retail investors alike. The inclusion of additional securities also enhances overall market liquidity, as traders can create hedging strategies that were previously unavailable.

Why Bajaj Holdings & Investment and Swiggy?

Bajaj Holdings & Investment Ltd.

BHIL is a holding company that owns the majority stake in Bajaj Finance Ltd., one of India’s fastest‑growing non‑bank financial institutions. The company’s shares have historically shown strong growth, with a market cap well over ₹1.5 trillion and a free‑float ratio that comfortably meets the NSE’s inclusion criteria. By placing BHIL on the F&O list, investors can now use futures and options to hedge their exposure to Bajaj Finance’s equity, thereby potentially reducing risk while still participating in upside moves.

Swiggy Inc.

Swiggy is a dominant player in the on‑demand food‑delivery space, and its stock has become a favorite among tech‑sector investors. The company has witnessed significant volatility, with sharp price swings tied to quarterly earnings and macro‑economic sentiment. Adding Swiggy to the F&O list offers traders the flexibility to hedge against such volatility, allowing them to lock in prices or speculate on future movements more efficiently.

The Other Two Companies

The article did not specify the other two names, but the NSE’s press release confirmed that they meet the same stringent criteria—high market capitalization, robust free‑float, and solid liquidity. In previous F&O additions, companies such as Hindustan Aeronautics Ltd. and Zee Entertainment Enterprises Ltd. have been added, so it is likely that the new entrants belong to similarly high‑profile sectors.

The Criteria Behind the Inclusion

The NSE follows a clear set of rules when adding stocks to the F&O list:

1. Market Capitalization: The company must have a market cap above a predefined threshold (usually ₹400 billion for the 2023–24 fiscal year).
2. Free‑Float Ratio: The free‑float must be at least 30 % to ensure sufficient liquidity for derivatives.
3. Price Threshold: The stock price must be above ₹5 to avoid low‑price volatility issues that can distort derivatives pricing.
4. Liquidity Measures: Average daily turnover and trading volume must meet minimum standards.

All four companies—including Bajaj Holdings and Swiggy—have surpassed these thresholds, justifying their inclusion.

Potential Impacts on Investors and the Market

Enhanced Hedging Opportunities

With derivatives available for a broader set of stocks, institutional investors can more precisely hedge sector‑specific exposures. For instance, a fund heavily invested in fintech might use Bajaj Finance futures to offset risks arising from regulatory changes or credit‑quality concerns.

Increased Liquidity and Depth

Derivatives trading usually brings additional liquidity to the underlying spot markets because option writers and futures sellers contribute to market making. Consequently, the spot trading of BHIL and Swiggy may see tighter bid‑ask spreads, especially during periods of heightened volatility.

Volatility and Price Discovery

Derivatives can amplify price movements, especially if a large volume of contracts is traded around earnings releases or macroeconomic announcements. The added F&O contracts for Bajaj Holdings and Swiggy will likely bring more attention to these names, potentially increasing their day‑to‑day volatility.

Regulatory Oversight

The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) monitor derivatives markets closely to curb systemic risk. The inclusion of new names expands the scope of their surveillance but also aligns with the RBI’s goal of developing a more inclusive and resilient market structure.

How to Trade the New F&O Contracts

• Futures: These are standard contracts that expire on the next trading day (NIFTY futures) or at the end of a month. Traders can use them to lock in prices or speculate on short‑term moves.
• Options: Call and put options are available with different strike prices, allowing traders to adopt bullish, bearish, or neutral positions.
• Clearing: All trades are cleared through the NSE Clearing Corporation (NCC), ensuring settlement risk is mitigated.

Conclusion

The addition of Bajaj Holdings & Investment and Swiggy to the NSE’s F&O list represents a meaningful step toward a more diversified and liquid Indian derivatives market. It reflects the NSE’s ongoing commitment to providing investors with robust tools to manage risk and capture opportunity. For traders, the move opens a new frontier for hedging and speculative strategies on two high‑profile names that have captured the attention of both domestic and international investors. As the new contracts begin trading on 31 December, market participants will likely gauge the initial impact on pricing, liquidity, and volatility, setting the stage for future adjustments to the F&O universe.