April 10: Seven Stocks Barred from NSE F&O Trading Over Limit Breach

10 Apr 2024 , 10:28 AM

Hindustan Copper, Exide Industries, India Cements, Vodafone Idea, Zee Entertainment, SAIL, and Bandhan Bank are currently restricted from trading in the futures and options (F&O) segment on the National Stock Exchange.

F&O contracts of any stock enter the ban phase when its Open Interest (OI) surpasses 95% of the Market-Wide Position Limits (MWPL). The ban is lifted only if OI drops below 80%. Traders dealing with indices do not face stock-specific bans. NSE updates the F&O ban list daily based on securities exceeding the MWPL.

The percentage by which each of these stocks has exceeded the MWPL are as follows: Hindustan Copper (115.76%), Exide Industries (109.13%), India Cements (95.76%), Vodafone Idea (95.27%), Zee Entertainment (94.38%), SAIL (86.40%), and Bandhan Bank (80.69%).

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

The NSE updates its list of banned securities in the F&O segment daily, reflecting changes in market conditions. NSE regulations mandate that clients and members can only trade in derivative contracts of banned securities to reduce their positions.  Opening new positions during this ban period may result in penalty and disciplinary action.

On April 9, benchmark equity indices reached new highs, with the Sensex surpassing the historic 75,000 mark for the first time during intra-day trading before ending the session marginally lower due to profit-booking at higher levels.

The 30-share BSE Sensex closed with a decline of 58.80 points, or 0.08%, settling at 74,683.70. Throughout the day, it reached an all-time peak of 75,124.28, climbing by 381.78 points, or 0.51%.

The NSE Nifty concluded the day 23.55 points, or 0.10%, lower at 22,642.75. It reached a record peak of 22,768.40 during intra-day trading, gaining 102.1 points, or 0.45%.

In the broader market, the BSE midcap gauge dropped by 0.47%, while the smallcap gauge declined by 0.15%.

Among the indices, consumer durables fell by 1.10%, industrials declined by 0.55%, capital goods by 0.48%, and telecommunications by 0.29%.

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