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National Aluminium Company Limited (Nalco), Canara Bank, Punjab National Bank (PNB), Indiabulls Housing Finance and Steel Authority of India (SAIL) continue to be the among the stocks/securities that have been put in the futures and options (F&O) ban for trade on Monday, October 11, 2021 by the National Stock Exchange (NSE). 

Whereas Indian Railway Catering and Tourism Corporation (IRCTC) and Sun TV have been added to the list for 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.

IRCTC shares have skyrocketed in the recent bull run with the stock surging over 235% this year (year-to-date). The state-owned company, which enjoys a strong monopoly, entered the primary markets by listing in October 2019. It has 100% market share in rail network. It’s also the only entity authorised to manage catering services on trains and major static units at railway stations.

“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.

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.

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