July 21: NSE imposes F&O ban on 7 stocks

21 Jul 2023 , 10:21 AM

On Friday, July 21, 2023, the National Stock Exchange (NSE) imposed a trade ban on seven stocks under the futures and options (F&O) segment. The reason for the ban is that these securities have surpassed 95 % of the market-wide position limit (MWPL), according to an announcement made by the NSE. However, despite the ban on futures and options trading, these stocks will still be available for trading in the cash market.

Stocks Under F&O Ban:

The seven stocks that have been included in the F&O ban list by the National Stock Exchange for Friday are as follows:

• Delta Corp
• Balrampur Chini Mills Ltd
• Indiabulls Housing Finance
• Manappuram Finance
• RBL Bank
• L&T Finance Holdings
• Punjab National Bank

The National Stock Exchange routinely updates the list of securities subject to the F&O ban for trade. The inclusion of the aforementioned stocks is a result of their derivative contracts crossing the 95 % threshold of the market-wide position limit, leading to the imposition of the ban by the stock exchange.

During the ban period, the NSE has advised all clients and members to trade in the derivative contracts of the affected securities only to reduce their positions through offsetting positions. Any attempt to increase open positions during this period will be met with appropriate penal and disciplinary action, as emphasized by the NSE.

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