1 min read.Updated: 14 Sep 2021, 08:24 AM ISTLivemint
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, NSE said
As many as five stocks/securities have been put under the futures & options (F&O) ban by the National Stock Exchange (NSE) for trade on Tuesday, September 14, 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.
“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.
Canara Bank, Exide Industries, LIC Housing Finance, Indiabulls Housing Finance, and National Aluminium Company (Nalco) are the stocks that are under F&O ban today as 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.
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.