As many as eight stocks/securities have been put under the futures and options (F&O) ban for trade by the National Stock Exchange (NSE) on Monday, September 20, 2021. 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.
Indian Railway Catering and Tourism Corporation (IRCTC) is back in the NSE F&O ban list on Monday after being out in the previous trading session. Escorts, Sun TV, National Aluminium Company (Nalco), SAIL, Exide Industries continue to be among the stocks under the ban period whereas Punjab National Bank (PNB) and Indiabulls Housing Finance have been added to the list 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.
“It is hereby informed that all clients/members shall trade in the derivative contracts of said security 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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