IRCTC: Shares of Indian Railway Catering and Tourism Corporation (IRCTC) drew sharp attention on Tuesday after the National Stock Exchange (NSE) said the stock will be excluded from the Futures and Options (F&O) segment from February 25, 2026.
The move comes in the wake of stricter derivative eligibility norms introduced by market regulator Sebi, which raised benchmarks for liquidity, delivery value and market-wide position limits. IRCTC no longer meets the revised thresholds, prompting its removal from the derivatives list.
Existing Contracts To Trade Till Expiry
The exchange clarified that currently listed contracts for December 2025, January 2026 and February 2026 will remain available until their respective expiry dates. However, no fresh F&O series will be introduced once these contracts mature.
The announcement led to a noticeable surge in trading volumes as traders began adjusting positions or unwinding derivative exposure ahead of the stock’s scheduled exit from the segment.
Impact On Traders And Volatility
For derivatives traders, the implications are substantial. Once IRCTC exits the F&O segment, leverage-based strategies and efficient hedging through futures and options will no longer be possible. The absence of options trading is also expected to reduce liquidity typically associated with mid-cap stocks.
While this may limit short-term speculative opportunities, analysts believe it could gradually cool intraday volatility after the final expiry.
Fundamentals Remain Intact
In the cash market, IRCTC continues to operate as a monopoly player in online ticketing, catering and tourism services for Indian Railways. The company remains debt-free with a stable financial position. Market experts note that the F&O exclusion does not impact IRCTC’s business fundamentals, though it does alter how traders and investors interact with the stock.
What Lies Ahead
Volatility is expected to remain elevated in the coming months as rollover pressure builds closer to the final derivative expiry. Once the stock is fully out of the F&O segment, price action is likely to reflect earnings performance, business developments and broader railway sector sentiment more closely.
Until then, IRCTC is set to remain one of the most closely tracked mid-cap stocks, as market participants prepare for a fundamentally different trading landscape by early 2026.
