Polycab share price falls as NSE plans F&O exit over Rs 2.79 crore insolvency case
Representative image: Bru-nO / Pixabay
Polycab shares fell up to 5% after NSE said on October 12, 2026 it will drop the stock from F&O over an insolvency case on a Rs 2.79 crore claim that NCLAT has stayed.
What Happened
Shares of Polycab India, the wires and cables maker, fell as much as 5 per cent on Tuesday, October 13, 2026, after the National Stock Exchange (NSE) said it would remove the stock from its futures and options (F&O) segment from December 30. The exchange's circular, dated October 12, follows an order of the National Company Law Tribunal (NCLT) in Ahmedabad on October 7 admitting an insolvency petition against Polycab over an alleged unpaid operational debt of just Rs 2.79 crore. Polycab has told the exchanges that the National Company Law Appellate Tribunal (NCLAT) stayed that order on October 9. The NSE has nevertheless gone ahead with the F&O exit and imposed a 100 per cent margin on derivative positions.
Key Facts
- Claim: Asier Metals Private Ltd says Polycab owes it Rs 2.79 crore in operational dues, under Section 9 of the Insolvency and Bankruptcy Code.
- NCLT Ahmedabad admitted the petition on October 7, 2026; NCLAT stayed the order on October 9.
- NSE circular (October 12): Polycab to exit the F&O segment from December 30, 2026.
- Existing October, November and December contracts continue until expiry; no new contracts will be added.
- A 100% margin applies to existing derivative positions and new ones from October 14.
- Shares fell about 4-5% on October 13, touching an intraday low of Rs 7,995 on the NSE.
- Polycab says it has no debt, net cash above Rs 4,000 crore and a net worth of Rs 11,682 crore (as of March 31, 2026).
Why It Matters
The case shows how rule-based market safeguards can hit even a financially strong company over a small dispute. Under the NSE's framework, the stock of a company admitted into insolvency under the IBC is moved out of the F&O segment, and the size of the claim does not change that. Here the disputed amount is a tiny fraction of Polycab's reported cash, and the company calls it a contested commercial dispute. Yet the admission alone was enough to trigger the exchange's process, and the appellate stay has not, so far, reversed it.
For investors, F&O inclusion matters. Derivative contracts let investors hedge and trade a stock with leverage. Losing them, even temporarily, can reduce trading activity and weigh on the price, which is why the shares fell even though the company's business is unaffected by the claim itself.
There is a precedent. In 2023, the NSE removed Zee Entertainment from the F&O segment after an insolvency-related order, using a similar approach of a 100 per cent margin followed by discontinuing contracts.
| Date (2026) | Event |
|---|---|
| October 7 | NCLT Ahmedabad admits insolvency petition |
| October 9 | NCLAT stays the NCLT order |
| October 12 | NSE circular on F&O exit |
| October 13 | Shares fall up to 5% |
| October 14 | 100% margin applies to new derivative positions |
| December 30 | F&O exit takes effect |
Impact
Short-term: Derivative traders must post full margin, which reduces leverage and trading in the stock. Price swings are likely as the market watches the NCLAT case.
Long-term: If the dispute is settled or the insolvency admission is set aside, Polycab could later seek a return to the F&O segment. The episode may also renew debate on whether exchanges should treat small, contested claims against cash-rich companies the same way as genuine insolvencies.
Who is affected: Polycab shareholders and F&O traders; the company's management; and other listed companies that may face small operational-creditor petitions.
Key Takeaway
A disputed Rs 2.79 crore claim has pushed the NSE to plan Polycab's exit from F&O trading, knocking its shares, even though the appellate tribunal has stayed the insolvency order.
Questions and Answers
Why did Polycab's share price fall?
Polycab shares fell up to 5 per cent on October 13, 2026 after the NSE said it would remove the stock from the futures and options segment from December 30, because an insolvency petition against the company had been admitted.
What is the insolvency case against Polycab?
Asier Metals Private Ltd claims Polycab owes it Rs 2.79 crore in operational dues. NCLT Ahmedabad admitted the petition on October 7, and NCLAT stayed that order on October 9. Polycab calls it a contested commercial dispute.
Will Polycab F&O contracts stop immediately?
No. Existing October, November and December contracts will trade until expiry, but no new contracts will be introduced, and the exit takes effect from December 30, 2026. A 100 per cent margin applies to positions.
Is Polycab in financial trouble?
The company says it has no debt, net cash of more than Rs 4,000 crore and a net worth of Rs 11,682 crore as of March 31, 2026. The disputed claim is small relative to those figures.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
Sourced and fact-checked by the Peepals Global Editorial Team
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