July 24: NSE Imposes Ban on Six Stocks in F&O Segment

24 Jul 2023 , 09:42 AM

National Stock Exchange (NSE) has put six stocks under a trading ban in the futures and options (F&O) segment on Monday, July 24, 2023. The ban has been implemented as these securities have exceeded 95 % of the market-wide position limit (MWPL), according to official statements from the NSE. 

The Stocks Under the Ban

The six stocks that have been included in the F&O ban list are as follows:

1. Delta Corp

2. Balrampur Chini Mills Ltd

3. Indiabulls Housing Finance

4. Manappuram Finance

5. L&T Finance Holdings

6. Punjab National Bank

The stocks will still be available for trading in the cash market.

The NSE regularly updates the list of securities under the F&O ban for trade, and this particular decision was taken in response to the derivative contracts of the mentioned securities surpassing 95 % of the market-wide position limit. As a result, these contracts are currently subjected to the ban period imposed by the stock exchange.

Traders are allowed to trade in derivative contracts of the affected stocks but only to reduce their existing positions by offsetting them. Any attempt to increase open positions will be met with appropriate penal and disciplinary action, as stated by the NSE.

During the F&O ban period, it is important to note that no fresh positions are permitted for derivative contracts associated with the mentioned stocks. Traders will need to adhere to the ban restrictions until further updates from the NSE.

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