13 Stocks Face Trading Ban on NSE, Including Indus Towers and Ashok Leyland

14 Feb 2024 , 10:08 AM

On Wednesday, February 14, thirteen stocks—Aditya Birla Fashion and Retail (ABFRL), Ashok Leyland, Aurobindo Pharma, Balrampur Chini, Bandhan Bank, Biocon, Delta Corp, India Cements, Indus Towers, National Aluminium Company, Punjab National Bank (PNB), Steel Authority of India (SAIL) and Zee Entertainment Enterprises—were placed on the F&O ban list.

When open interest (OI) on a stock exceeds 95% of the market-wide positions limits, or MWPL, the F&O contracts for that stock go into a ban period. Its prohibition is only lifted if the open interest drops to less than 80%.

Every day, the NSE refreshes its list of securities that are prohibited from trading in the F&O segment. The present prohibition is related to derivative contracts that exceed the 95% MWPL.

The NSE advises traders and clients to use derivative contracts solely to offset their positions during the prohibition period in order to lower their positions. Any increase in available employment during the prohibition period could lead to suitable sanctions and disciplinary actions.

There is never a security ban for traders who trade indices.

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