Polycab to exit F&O trading segment over ₹2.79 crore dues

Companies No. 105 29 October 2026 · 1 min read · By Pranami Hayaran

On 7 October, a tribunal in Ahmedabad admitted Polycab into insolvency over an unpaid bill of ₹2.79 crore. But India's largest cable maker says it has no debt and over ₹4,000 crore in net cash. So why is this happening?

Polycab makes wires and cables for homes, factories and power lines. It sold ₹28,185 crore worth in FY26. Its supplier, Delhi-based Asier Metals, billed it ₹34.17 crore for aluminium in June. Polycab paid ₹30.97 crore but disputed the remaining amount.

The dispute involves credit notes, an ₹80 lakh credit Polycab says it was promised for shipping delays, and a ₹17.53 crore counterclaim. The tribunal found no proof that the dispute existed before Asier formally demanded payment. Under insolvency law, an unpaid bill can trigger proceedings even if a company has plenty of cash.

Polycab offered to deposit the full amount. On 9 October, an appeals tribunal paused the insolvency order. But the NSE's trading restrictions still apply. On 12 October, it said Polycab's futures and options contracts would stop trading from 30 December. Margin on existing positions rose to 100%. From 1 January, the stock will face a 5% daily price limit, and every trade must be settled in full.

On 27 October, the appeals tribunal also told MSCI not to remove Polycab from its index until the case is decided.

So a company with over ₹4,000 crore in net cash could lose F&O trading over a disputed ₹2.79 crore bill. The legal fight is far from over, but the trading consequences have already begun.

A bar of Polycab's ₹11,682 crore net worth with Asier Metals' ₹2.79 crore claim as a slice too thin to see at the left end.

A waterfall from a ₹1.99 crore credit in Polycab's favour, up ₹34.17 crore of June invoices, down ₹30.97 crore paid, up ₹3.44 crore of refunded advance, down ₹1.87 crore of credit notes, to ₹2.78 crore, plus ₹0.01 crore from an earlier deal, to a ₹2.79 crore claim.

A timeline of 4 dates: NSE's August 2026 rule that a stay does not end its measures, Polycab's admission, stay and NSE action in October, the last futures and options day on 30 December, and a 5% price band from 1 January 2027.

Sources