April 8: NSE Bans 4 Stocks in F&O Segment

8 Apr 2024 , 10:27 AM

On April 08, 2024, the National Stock Exchange (NSE) banned trading for 4 stocks under the futures and options (F&O) segment due to crossing 95% of the market-wide position limit (MWPL). Despite the ban in the F&O segment, the stocks will still be available for trading in the  cash market.

The NSE regularly updates the F&O ban list, and the ban is enforced when derivative contracts surpass 95% of the MWPL.

The NSE mandates that during the ban period, clients/members can only trade derivative contracts of the mentioned securities to reduce their positions, and any increase in open positions will face penalties.

No new positions are permitted in any of the F&O contracts for the specified stocks during the ban period.

On April 5, the Sensex reached a new all-time high of 74,248 after the Reserve Bank of India maintained key interest rates unchanged amidst global market negativity. The RBI’s six-member rate-setting panel kept the benchmark interest rates at 6.5% for the seventh consecutive time.

The BSE Sensex closed at a fresh record of 74,248.22 with a minimal gain of 20.59 points or 0.03%, fluctuating between 74,361.11 and 73,946.92 throughout the day. The broader NSE Nifty ended with a slight decline of 0.95 points at 22,513.70 on the same day.

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