The National Stock Exchange (NSE) on April 28, 2026, issued the F&O Consolidated Circular.
The following has been stated:
• The F&O Consolidated Circular serves as a comprehensive master document compiling all rules, updates, and instructions for the Futures & Options segment up to March 31, 2026, replacing the earlier 2025 circular. It standardizes trading operations by detailing market parameters, including a pre-open session (9:00–9:15 AM) for price discovery in futures, order types, lot sizes, tick sizes, and dynamic price ranges.
• The circular emphasizes strong risk management measures, including pre-trade margin checks, quantity freeze limits, and safety tools like kill switch and cancel-on-logout. It also defines pricing mechanisms such as base price calculation and theoretical pricing models (cost-of-carry for futures and Black-Scholes for options), along with adjustments for corporate actions like bonuses, splits, and mergers to maintain position value.
• Additionally, it lays down rules on trading hours, expiry cycles (generally last Tuesday), compliance requirements like PAN verification and self-trade prevention, and system infrastructure, including NEAT platform and disaster recovery.
[Notification no. - NSE/FAOP/73928]
