February 26: NSE Imposes F&O Ban on 13 Stocks as Market-wide Position Limits Exceed 95%

26 Feb 2024 , 10:04 AM

On February 26, 2024, the National Stock Exchange (NSE) imposed a ban on 13 stocks in the futures and options (F&O) segment due to the market-wide position limit (MWPL) crossing 95%. However, these stocks remain available for trading in the cash market.

The 13 stocks included in the F&O ban list are Aditya Birla Fashion and Retail, Ashok Leyland, Balrampur Chini Mills, Biocon, Canara Bank, GMR Infra, GNFC, Hindustan Copper, Piramal Enterprises, PVR INOX, RBL Bank, SAIL, and ZEEL.

The NSE updates the F&O ban list daily, and the ban is imposed when derivative contracts in the mentioned securities surpass 95% of the MWPL.

NSE has instructed clients/members to trade in the derivative contracts of banned securities only to reduce their positions through offsetting. Any increase in open positions will face penal and disciplinary action.

During the F&O ban period, no fresh positions are allowed for any of the F&O contracts in the specified stocks. On the previous trading day, the Sensex and Nifty experienced a decline in a volatile market, primarily due to selling in IT and select banking shares.

The BSE Sensex closed at 73,142.80 points, slipping 0.02%, with 17 constituents closing in the red and 13 in the green. The Nifty of NSE closed at 22,212.70 points, down 0.02%, as gains in FMCG, pharma, and financial shares were offset by losses in IT and private bank shares. The intra-day trade saw the Nifty reaching a record high of 22,297.50 points.

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