February 22: 15 Stocks Placed on F&O Ban by NSE as Market-Wide Position Limits Exceeded

22 Feb 2024 , 10:06 AM

On February 22, 2024, the National Stock Exchange (NSE) imposed a ban on trading 15 stocks in the futures and options (F&O) segment. The decision was made due to these securities surpassing 95% of the market-wide position limit (MWPL) set by the NSE.

Despite the F&O ban, the mentioned stocks will still be available for trading in the cash market. The list of banned stocks includes Ashok Leyland, Balrampur Chini Mills, Bandhan Bank, Biocon, Canara Bank, GMR Infra, GNFC, Hindustan Copper, India Cements, Indus Towers, National Aluminium Company, Piramal Enterprises, PVR INOX, RBL Bank, and ZEEL.

The NSE updates the F&O ban list daily based on the market-wide position limit. Derivative contracts for these stocks have exceeded 95% of the MWPL, leading to the imposition of the ban by the stock exchange.

Traders and members are instructed to decrease their positions in the derivative contracts of the banned securities through offsetting positions to avoid penalties. During the ban period, no fresh positions are allowed in the F&O contracts of the specified stocks.

On the same day, the broader Nifty index experienced a decline of 141.90 points or 0.64%, closing at 22,055.05 points. In the Sensex pack, 20 stocks ended in the red, and 37 Nifty constituents closed the session with losses. Both the Sensex and Nifty broke their six-day winning streak due to profit booking and mixed global cues.

The Sensex settled 434.31 points or 0.59% lower at 72,623.09 points, touching an intra-day low of 72,450.56. The decline was attributed to fag-end selling.

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