NSE sets Polycab India F&O exit for December as NCLAT halts insolvency order

The National Stock Exchange will exclude Polycab India from its equity derivatives segment by 30 December 2026, even as the company secured interim relief from the appellate insolvency tribunal against a supplier dispute.

Under an exchange circular issued on 12 October, no new contracts with fresh expiry months will be rolled out once existing series mature. Derivative contracts expiring in October, November, and December 2026 will remain available until their scheduled settlement dates, with new strike prices added as required. Trading in Polycab contracts on the futures and options platform will cease entirely on 30 December 2026.

To manage exposure in the interim, the exchange has introduced tighter surveillance, levying a 100% margin on existing derivatives on a T+2 basis. The margin rule took effect on 13 October for open positions and on 14 October for new trades. From 1 January 2027, the stock will move to price bands and gross settlement under the Insolvency and Bankruptcy Code framework.

NCLAT stays resolution process

The derivative phase-out followed an order by the Ahmedabad bench of the National Company Law Tribunal on 7 October, which admitted an insolvency petition against Polycab over an alleged operational debt of Rs 2.79 crore brought by Asier Metals Private Limited.

Polycab challenged the decision before the National Company Law Appellate Tribunal in New Delhi. The company's legal counsel argued that the dispute was long-standing and revolved around earlier reconciliations, payments, and pending credit notes rather than genuine default. Polycab also offered to deposit the entire disputed amount with the registry to demonstrate its liquidity.

The appellate tribunal stayed the Ahmedabad order and kept the corporate insolvency resolution process in abeyance. It directed Polycab to deposit the Rs 2.79 crore through a fixed deposit receipt in the name of the NCLAT Registrar within a week.

Market reaction and financial performance

Equity investors brushed off the regulatory movement, buoyed by the swift stay from the appellate tribunal and steady demand across India's power and building infrastructure sectors. Shares of Polycab closed higher on Monday, rising 1.82% on the NSE to Rs 8,405 and gaining 1.99% on the BSE to end at Rs 8,414.

The underlying business continues to expand alongside the country's capital expenditure pipeline. First-quarter revenue rose 39% year-on-year to Rs 8,209 crore, up from Rs 5,906 crore in the same period last year. Earnings before interest, tax, depreciation, and amortisation climbed 32.5% to Rs 1,136 crore.

The flagship wires and cables division delivered Rs 7,202 crore of the quarterly top line, generating Rs 959 crore in segment earnings before interest and tax. The company has gained nearly 10% on the stock market over the year, holding steady while broader indices tracked lower.