July 14: NSE Imposes Trading Ban on Seven Stocks in F&O Segment Due to MWPL Breach

14 Jul 2023 , 10:51 AM

The National Stock Exchange (NSE) has implemented a ban on seven stocks under the futures and options (F&O) segment for trading on Friday, July 14, 2023.

These securities have exceeded 95% of the market-wide position limit (MWPL), leading to their inclusion in the F&O ban list, as stated by the NSE. However, the stocks will remain available for trading in the cash market.

The stocks that are part of the F&O ban list for Friday include Delta Corp, Hindustan Copper, India Cements, Indiabulls Housing Finance, Punjab National Bank, Manappuram Finance, and Zee Entertainment Enterprises Ltd.

The NSE regularly updates the list of securities under the F&O ban for trade, based on derivative contracts that have crossed the 95% MWPL threshold.

During the ban period, derivative contracts for these securities cannot be initiated, and traders can only decrease their existing positions through offsetting trades. Any increase in open positions during the ban period will result in appropriate penal and disciplinary action, as per the NSE guidelines.

Fresh positions are not permitted in any of the F&O contracts associated with the stocks placed under the ban by the stock exchanges.

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