As many as six stocks/securities have been put under the futures and options (F&O) ban for trade on Monday, October 25, 2021 by the National Stock Exchange among which stocks like Punjab National Bank (PNB), Vodafone Idea, Escorts, and Steel Authority of India (SAIL) continue to be under the ban.
Indian Energy Exchange (IEX), Indiabulls Housing Finance have been added to the list by the stock exchange for the F&O stocks ban for today. These securities are banned under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.
IEX is the premier electricity exchange in India, which facilitates electricity trade. The energy exchange’s stock surged significantly in the past few sessions on the back of its second quarter earnings and bonus issue announcement.
Meanwhile, Indian Railway Catering and Tourism Corporation (IRCTC), Tata Power, National Aluminium Company Limited (Nalco), which were under the F&O ban on Friday, are out of the list for today.
The derivative contracts in the mentioned securities have crossed 95% of the market-wide position limit and are therefore have been currently put in the ban period by the stock exchange, said NSE.
“It is hereby informed that all clients/members shall trade in the derivative contracts of said securities only to decrease their positions through offsetting positions,” the stock exchange said. “Any increase in open positions shall attract appropriate penal and disciplinary action,” NSE added.
No fresh positions are allowed for any of the F&O contracts in that particular stock when it is under the F&O ban period. The MWPL (market-wide position limit) is set by the stock exchanges which is the maximum number of contracts that can be open at any time (Open Interest), therefore, the F&O contracts of that stock enter a ban period if the open interest crosses 95% of the MWPL.
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