Summary:
Polycab India shares fell over 5% on October 13 after NSE announced the stock’s exclusion from the F&O segment from December 30, 2026. A 100% margin requirement and ongoing insolvency-related proceedings remain key developments for traders and investors.
Why Did Polycab India Shares Fall on October 13?
Polycab India stock declined over 5% on Tuesday, October 13, 2026, after the National Stock Exchange (NSE) said the company's stock will be delisted from the futures and options (F&O) segment from December 30, 2026. The decision comes after the company was put under the Insolvency and Bankruptcy Code (IBC) monitoring framework, but an appellate tribunal has stayed the insolvency order.
Polycab India Share Price and NSE Decision
| Particular | Details |
|---|---|
| Company | Polycab India Ltd |
| Stock symbol | POLYCAB |
| Date of share-price decline | October 13, 2026 |
| Intraday low | ₹7,955, according to the supplied article and market reports |
| Previous close | ₹8,405, as stated in the supplied article |
| F&O exclusion date | December 30, 2026 |
| Margin requirement | 100% under the NSE circular |
| Margin implementation | From October 14 for new positions; applicable to open positions as specified in the circular |
| Insolvency petition applicant | Asier Metals Private Limited |
| Alleged operational debt | Approximately ₹2.79 crore |
| Legal development | NCLAT stayed the NCLT insolvency-admission order pending further proceedings |
Polycab India Stock Price Drops Over 5%
Polycab India’s shares declined to an intraday low of ₹7,955, down by nearly 5.35% from the previous close of ₹8,405 in Tuesday’s morning trade.
The stock opened at ₹8,250, lower than Monday’s closing level, before witnessing further selling pressure. It has a 52-week trading range of ₹6,663 to ₹10,126.
The fall came after investors reacted to NSE’s decision to suspend derivatives trading in the stock. The announcement was made as developments were unfolding on the company’s insolvency proceedings.
Polycab had closed 1.82% higher at ₹8,405 on Monday, October 12, making Tuesday’s fall a sharp reversal from the previous session.
NSE to Delist Polycab From F&O Segment From December 30
The NSE, in a circular dated October 12, said that Polycab India will be delisted from the equity derivatives segment from December 30, 2026.
The exchange said no more expiry months will be listed for futures and options contracts once the October 2026 contracts expire.
Existing contracts expiring in October, November and December 2026 will continue to be available for trading until their expiry dates. New strike prices may also be introduced within these existing contract months.
The exchange also announced that a 100% margin requirement will be applicable on all existing derivative positions on a T+2-day basis and for new positions created from October 14, 2026.
The higher margin requirement means traders will have to hold more money against their derivative positions, potentially increasing the cost of holding such trades.
From December 30, Polycab will not have any active F&O contracts available for trading after the expiry of the existing contracts.
Action on Insolvency Proceedings in NSE
The exclusion comes after Polycab India was shortlisted under the IBC framework after the National Company Law Tribunal (NCLT), Ahmedabad Bench, admitted insolvency proceedings against the company on October 7, 2026.
The proceedings were initiated following an application filed by Asier Metals Private Limited relating to an alleged operational debt of ₹2.79 crore.
However, the NCLAT stayed the NCLT order and kept the insolvency proceedings in abeyance till further orders.
The dispute involves payments and credit notes between the two companies. In the appellate proceedings, Polycab was directed to deposit the disputed amount by way of a fixed deposit receipt within the stipulated period.
Despite the stay of the insolvency order, the NSE's announcement of exclusion from derivatives remains in place.
The distinction is important because a stay on insolvency proceedings does not automatically undo the exchange’s separate decision on derivatives trading.
What Does Exclusion From F&O Mean for Polycab Investors?
If the F&O segment is withdrawn after the expiry of the last existing contracts, traders will not be allowed to trade in futures or options in Polycab.
However, the exclusion does not mean that Polycab shares will cease trading in the cash market. The company’s equity shares will remain available for investors to purchase and sell under applicable exchange rules.
F&O contracts are popularly used for hedging and leveraged trading. Their removal could lead to less trading activity related to derivatives and impact liquidity and short-term participation in the market.
Traders with open positions could also be impacted by the 100% margin requirement, as they may be forced to post extra capital to maintain their exposure.
Other surveillance measures, like price bands and gross settlement provisions under the IBC framework, will come into force from January 1, 2027.
Polycab India: What to Watch Next?
The immediate focus is on the implementation of the NSE F&O exclusion decision and further developments in the insolvency-related legal proceedings.
Polycab’s core business remains in the wires and cables, fast-moving electrical goods and electrical infrastructure segments. What has changed most recently is a legal and derivatives eligibility issue, not an announced change in the company's operating performance.
Investors will be keenly watching for any further communication from the exchange, developments in the NCLAT proceedings and any changes to trading restrictions.
The key developments impacting the near-term trading activity of the stock are the exclusion of Polycab from derivatives trading and the additional margin requirements.
