Mumbai, December 23, 2025 – Indian Railway Catering and Tourism Corporation (IRCTC), the Indian Railways’ ticketing and tourism arm, will be removed from the Futures and Options trading segment on the National Stock Exchange starting February 25, 2026, following the expiry of existing contracts.
The move comes as a direct consequence of the Securities and Exchange Board of India’s revised eligibility criteria for derivative trading, introduced in August 2024. Under the new framework, stocks must meet significantly higher thresholds to maintain their presence in the F&O segment.
Regulatory Tightening Reshapes Derivatives Landscape
SEBI’s updated norms have raised the bar considerably for companies seeking to remain in the derivatives market.
The Median Quarter Sigma Order amount requirement has tripled from ₹25 lakh to ₹75 lakh, while the Market Wide Position Limit has jumped from ₹500 crore to ₹1,500 crore.
IRCTC, despite being a fundamentally sound business with a government monopoly on railway catering and online ticketing, has fallen short of these enhanced benchmarks.
The regulatory overhaul aims to reduce speculation and improve market stability by ensuring only highly liquid stocks with substantial trading volumes remain eligible for leverage-based derivative instruments.
What This Means for Market Participants
For derivative traders who have used IRCTC for hedging strategies or speculative positions, the February 2026 deadline marks the end of an era.
Existing contracts for December 2025, January 2026, and February 2026 will continue to trade until their natural expiry, giving market participants a transition window to unwind positions.
However, long-term equity investors need not worry. IRCTC will continue to be listed and actively traded in the cash segment on both NSE and BSE.
The company’s stock remains available for regular buying and selling, with no impact on spot market operations.
IRCTC’s Market Position Remains Intact
Despite losing its F&O status, IRCTC maintains its position as a critical player in India’s transportation ecosystem.
The company holds a virtual monopoly on railway catering services and operates the country’s primary platform for train ticket bookings, generating consistent revenue streams from its diverse business verticals including tourism packages, catering, and e-ticketing services.
Market analysts suggest that while the F&O delisting may reduce short-term trading volumes and price volatility, it is unlikely to impact the company’s fundamental value proposition or long-term investment appeal.
Broader Implications for Smaller-Cap F&O Stocks
IRCTC is not alone in facing exclusion from the derivatives segment. Several other stocks that previously qualified for F&O trading are expected to be gradually phased out as exchanges conduct periodic reviews against SEBI’s stringent criteria.
This trend signals a consolidation in the derivatives market, with trading activity likely to concentrate in larger, more liquid securities.
The regulatory shift reflects SEBI’s broader objective of protecting retail investors from excessive risk while ensuring that derivative markets serve their intended purpose of price discovery and hedging rather than pure speculation.
As the February 2026 deadline approaches, traders and market watchers will be closely monitoring how IRCTC’s stock behaves in a purely cash-market environment, free from the influence of leverage-driven derivative trading.
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