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Polycab Shares Plunge: Why Is The Stock Falling And What Is The NCLAT Connection
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News18•14-10-2026, 14:50
Polycab Shares Plunge: Why Is The Stock Falling And What Is The NCLAT Connection
- •Polycab India shares dropped up to 5.40 percent on the NSE, witnessing a decline for the second consecutive session due to rising volatility.
- •The National Stock Exchange decided to exclude Polycab from the Futures and Options segment and imposed a 100 percent margin on existing derivative contracts.
- •A legal dispute involving alleged dues of Rs 2.79 crore led to insolvency proceedings, which have been temporarily stayed by the NCLAT.
- •The NCLAT advanced the hearing date to October 15, making the upcoming court decision crucial for investors tracking the stock.
- •Polycab maintains a strong financial position with over Rs 4,000 crore in net cash and insists that operations remain completely normal.
Key Questions Answered
Polycab India's shares have faced a decline due to two main factors: the National Stock Exchange's decision to exclude the company from the Futures and Options segment, and an insolvency proceeding case over alleged dues of ₹2.79 crore.
Existing F&O contracts for October, November, and December 2026 will continue until their respective expiries, but no new contracts will be issued after December 30. Additionally, a 100% margin is imposed on derivative contracts, increasing trading costs.
The NCLT Ahmedabad bench accepted a petition from Asier Metals to initiate insolvency proceedings over ₹2.79 crore in dues, but the NCLAT stayed the order. The NCLAT scheduled the next hearing for October 15 following an early hearing request.
