Shares of specialty chemicals producer Rain Industries declined on Wednesday, which is the last day for the company to trade in the futures & options (F&O) segment.

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With the expiry of the June series of contracts, the stock will be excluded from the F&O segment as per an earlier notice from the National Stock Exchange.

The NSE on April 24 had notified that the contracts for new expiry months in Rain Industries will not be issued on the expiry of existing contract months.

The decision was taken following the review of eligibility criteria of Rain Industries for the trade in F&O segment.

“Sebi’s guidelines for review of framework for stocks in derivatives segment state that after a period of one year from the date of the circular, only those stocks which meet the enhanced eligibility criteria shall remain in derivatives segment”, the NSE circular had stated.

As the existing contracts for expiry month of June are ending, the stock will be removed from the F&O segment. No contracts will be available for trading in Rain Industries with effect from June 30, 2023. Generally, stock exchanges carry out inclusion or exclusion of stocks in F&O segment annually based on SEBI guidelines.

A stock is excluded from the F&O trading for failing to meet the eligibility criteria like average median quarter sigma, MWPL value and average daily deliverable value for three consecutive months.

"There's no impact on investors holding shares in demat. So they need not worry about this development. The positions in F&O segment will be squared off today at closing," Ruchit Jain of 5paisa.com said.

Rain Industries Limited (RAIN) is one of the world's leading producers of calcined petroleum coke, coal tar pitch and other high-quality basic and specialty chemicals.

The stock has rallied around 16 percent in the past three months.

Shares of Rain Industries are trading 2.3 percent lower at Rs 166. The stock has declined in five out of the last six trading sessions and is down nearly 10 percent on a year-to-date basis.

First Published:Jun 28, 2023 10:41 AM IST