1 min read.Updated: 13 Oct 2021, 08:24 AM ISTLivemint
It is hereby informed that all clients/members shall trade in the derivative contracts of said stocks only to decrease their positions through offsetting positions, said NSE
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A total of seven stocks/securities have been put the under futures and options (F&O) ban for trade by the National Stock Exchange (NSE) on Wednesday, October 13, 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.
The seven stocks are Indian Railway Catering and Tourism Corporation (IRCTC), National Aluminium Company Limited (Nalco), Bank of Baroda (BoB) Punjab National Bank (PNB), Indiabulls Housing Finance, Sun TV and Steel Authority of India (SAIL), that continue to be under the list of F&O banned stocks.
On the other hand, Bharat Heavy Electricals (BHEL) and Canara Bank, which were in the list yesterday, are out from the NSE's stock ban list for today.
“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.
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.
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.