1 min read.Updated: 22 Oct 2021, 08:10 AM ISTLivemint
All clients/members shall trade in the derivative contracts of said stocks only to decrease their positions through offsetting positions, NSE said
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The same ten stocks/securities, that were put in the futures and options (F&O) ban stocks list on Wednesday, continue to be under the ban for trade by the National Stock Exchange (NSE) on Friday, October 22, 2021 as well. 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 ten stocks under F&O ban on NSE today are: Indian Railway Catering and Tourism Corporation (IRCTC), Punjab National Bank (PNB), Vodafone Idea, Sun TV, National Aluminium Company Limited (Nalco), Escorts, Amara Raja Batteries Ltd, L&T Finance Holdings, Tata Power, and Steel Authority of India (SAIL).
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.