As many as six stocks/securities have been put under the futures and options (F&O) ban for trade on Tuesday, October 26, 2021 by the National Stock Exchange (NSE). 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.
Among the six stocks, Escorts, Indian Energy Exchange (IEX), Indiabulls Housing Finance and Steel Authority of India (SAIL) continue to be under the ban. Whereas, National Mineral Development Corporation (NMDC) and Sun TV have been added to the list by the stock exchange for the F&O stocks ban for today.
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.
Meanwhile, Punjab National Bank (PNB) and Vodafone Idea, which were under the F&O ban in the previous session, are out from the list on Tuesday.
“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.
