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Home >Markets >Stock Markets >IRCTC among three stocks under F&O ban on NSE today

Three stocks/securities have been put under the futures & options (F&O) ban by the National Stock Exchange (NSE) for trade on Thursday, September 9, 2021. These securities are banned under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL).

The three stocks in ban for trade on F&O today are Indiabulls Housing Finance, Indian Railway Catering and Tourism Corporation (IRCTC) and National Aluminium Company (Nalco). The derivative contracts in the mentioned security has crossed 95% of the market-wide position limit and are currently in the ban period.

“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 exchange said. "Any increase in open positions shall attract appropriate penal and disciplinary action," NSE added.

IRCTC shares have skyrocketed in the recent bull run with the stock surging over 120% this year (year-to-date). Since its stock market debut, IRCTC has given stellar returns and has rallied 10 times since its IPO issue price of 320 per share. 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. 

Indiabulls Housing, one of India’s leading housing finance companies (HFC), is part of Indiabulls Group and offers home loans in the affordable housing segment. Whereas, Nalco is a Navratna CPSE under the Ministry of Mines. The company has integrated and diversified operations in mining, metal and power. 

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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