July 19: NSE Imposes Ban on Six Stocks in F&O Segment

20 Jul 2023 , 09:23 AM

On July 20, 2023, the National Stock Exchange (NSE) placed six stocks under a ban in the futures and options (F&O) segment.

The ban was imposed because these securities exceeded 95 %of the market-wide position limit (MWPL), according to the NSE.

The six stocks that are currently part of the F&O ban list by the stock exchange are as follows:

• Delta Corp
• Indiabulls Housing Finance
• Manappuram Finance
• Polycab India
• RBL Bank
• L&T Finance Holdings

The NSE updates the list of securities under the F&O ban daily based on the market-wide position limit. Traders and members were informed that they could only trade derivative contracts of the banned securities to decrease their positions through offsetting trades.

Any increase in open positions during the ban period will lead to appropriate penal and disciplinary action, as per the NSE’s announcement. No fresh positions are allowed for any F&O contracts related to the specified stocks during the ban period.

The NSE implemented the ban to regulate trading activities and prevent excessive speculation, ensuring fair and stable market conditions. Traders are advised to comply with the guidelines to avoid penalties and adverse consequences.

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