BHEL joins F-;O ban list on NSE

19 Jan 2022 , 12:53 PM

On 19th January 2022, NSE has added one more scrip to its existing F&O ban list of five companies, pertaining rise in BHEL’s trading in the future and options segment over 95% of the market-wide position limit.

BHEL is an Indian government-owned engineering and manufacturing company based in New Delhi, India. It is India’s largest power generation equipment manufacturer.

The total list of F&O ban has been increased to six today, consisting of BHEL and existing five scrips namely Granules India, Escorts, Vodafone, SAIL, and Indiabulls Housing Finance.

These securities have been added to the list as their derivative trading on the platform crossed the threshold of 95% market-wide position.
“All clients/members shall trade in the derivative contracts of said security only to offset their positions and to reduce it. Any further increase in open positions shall attract appropriate penal and disciplinary action,” the stated NSE.

As the ban continues, the traders would not be allowed to take any fresh positions in stocks, except for reducing their positions.

A market-wide position limit is set by the stock exchanges to define a maximum number of outstanding open positions (buy & sell) in the derivatives contracts of securities. If such trade exceeds 95% of the market-wide position limit, then its F&O contracts enter the ban period.
Normal trading shall be resumed only after the said positions dip to 80% or less than the market-wide position.

BHEL is currently trading at Rs60.75 up by Rs0.05 or 0.08% from its previous closing of Rs60.70 on the BSE. The scrip opened at Rs60.95 and has touched a intraday high and low of Rs61.60 and Rs59.95 respectively.