February 29: F&O Ban Hits 2 Stocks on NSE

29 Feb 2024 , 10:26 AM

On February 29, 2024, the National Stock Exchange (NSE) placed a ban on trading two stocks in the futures and options (F&O) segment due to exceeding 95% of the market-wide position limit (MWPL).

Indus Towers and SAIL are the specific stocks affected by the F&O ban on February 29, as listed by the stock market exchange. The NSE updates the F&O ban list daily based on securities that have crossed the 95% MWPL threshold.

Derivative contracts of the banned securities are currently under the ban period, and the NSE advises clients/members to trade only for position reduction through offsetting positions. Any increase in open positions may lead to penal and disciplinary action.

No new positions are allowed in the F&O contracts of the affected stocks during the ban period imposed by the stock exchanges.

On the same day, the benchmark Sensex experienced a decline of over 1%, with Nifty dropping below the 22,000 level, attributed to selling in Reliance Industries and bank stocks amidst weak global market trends.

The 30-share BSE Sensex fell by 1.08%, settling at 72,304.88, with 26 constituents ending in the red and four in the green. It hit a low of 72,222.29 during the day.

Nifty slumped by 1.11%, settling at 21,951.15. In the broader market, the BSE smallcap gauge declined by 1.94%, and the midcap index went lower by 1.82%.

All indices ended lower, with utilities falling by 2.82%, oil & gas declining by 2.19%, realty tanking by 2.12%, telecommunication dipping by 1.92%, and services (1.89%) and commodities (1.85%) also experiencing declines.

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