IRCTC, Vodafone Idea, PNB, 6 other stocks under F&O ban on NSE today

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Vodafone Idea, Indiabulls Housing Finance, Sun TV, Bharat Heavy Electricals Limited (BHEL), National Aluminium Company Limited (Nalco), Escorts and Amara Raja Batteries Ltd continue to be among nine stocks/securities under futures and options (F&O) ban for trade by the National Stock Exchange (NSE) on Wednesday, October 20, 2021.

Indian Railway Catering and Tourism Corporation (IRCTC), Punjab National Bank (PNB) have been added to the F&O ban list by the stock exchange 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.

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) witnessed a sudden slump 15% towards close to 4,995 per share in Tuesday’s trading session after hitting a record high in early deals. The stock closed at 5,363 apiece, down more than 8%. 

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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