July 28: NSE Puts 2 Stocks Under Futures & Options Ban

28 Jul 2023 , 12:19 PM

On Thursday, July 28, 2022, the National Stock Exchange (NSE) imposed a ban on the trade of two stocks in the futures and options (F&O) segment.

The securities put under the ban are Indiabulls Housing Finance and Delta Corp, as they have exceeded 95% of the market-wide position limit (MWPL), according to the NSE’s regulations.

Both Indiabulls Housing Finance and Delta Corp have been consistently listed on the F&O ban list by the stock exchange, with the list being updated daily.

The NSE has clarified that the derivative contracts of these stocks have breached the 95% threshold of the market-wide position limit, leading to their current ban status.

During the ban period, traders and investors are allowed to trade in the derivative contracts of these securities only to reduce their positions through offsetting positions.

However, any increase in open positions during the ban period will be subject to appropriate penal and disciplinary action, as specified by the stock exchange.

Notably, no fresh positions are permitted for F&O contracts related to these stocks while under the ban period. The stock exchanges determine the market-wide position limit (MWPL) and represent the maximum number of contracts (Open Interest) open at any time.

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