NSE Imposes Trading Ban on Hindustan Copper and Manappuram Finance Stocks Due to MWPL Breach

30 Nov 2023 , 12:05 PM

On November 30, 2023, two stocks, Hindustan Copper and Manappuram Finance, were placed under a trading ban in the futures and options (F&O) segment by the National Stock Exchange (NSE).

The ban was enforced due to these securities surpassing 95 % of the market-wide position limit (MWPL) set by the NSE. Despite the F&O trading ban, the affected stocks, Hindustan Copper and Manappuram Finance, are still available for trading in the cash market.

The NSE updates the list of securities under F&O trading bans on a daily basis, and for November 30, these two stocks were included.

The derivative contracts associated with the banned stocks have crossed the 95 percent MWPL threshold, leading to the imposition of the ban period by the NSE.

The NSE has explicitly instructed clients and members to engage in trading the derivative contracts of the affected securities only to reduce their positions through offsetting positions.

Any expansion of open positions during this ban period will result in appropriate penal and disciplinary action, as stated by the NSE.

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