A list of six stocks/securities have been put the under futures and options (F&O) ban for trade by the National Stock Exchange (NSE) on Monday, October 18, 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), Bank of Baroda (BoB), Indiabulls Housing Finance, Sun TV continue to be under the list of F&O banned stocks. Whereas, Bharat Heavy Electricals Limited (BHEL) has been added to the list by the stock exchange today.
Meanwhile, National Aluminium Company Limited (Nalco), Punjab National Bank, and Steel Authority of India (SAIL) that were under ban in the previous session are out from the list on Monday.
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.
On the other hand, the NSE recently announced the inclusion of eight new stocks that will be made available for trading in the F&O segment from October 29, subject to fulfilment of eligibility criteria of Quarter sigma computation cycle of October 2021.
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