March 11: NSE Bans 5 Stocks in F&O

11 Mar 2024 , 10:07 AM

On March 11, 2024, the National Stock Exchange (NSE) imposed a ban on the trading of five stocks in the futures and options (F&O) segment due to the crossing of 95% of the market-wide position limit (MWPL) for these securities.

The stocks affected by the F&O ban are Manappuram Finance, Mahanagar Gas, SAIL, Tata Chemicals, and ZEEL.

Despite the F&O ban, these stocks remain available for trading in the cash market. The NSE updates the list of securities under F&O ban daily, and this decision is based on derivative contracts crossing 95% of the market-wide position limit.

Traders and clients are advised to trade in derivative contracts of the banned securities only for reducing their positions through offsetting positions. Opening new positions during this ban period may result in penal and disciplinary action.

On the same day, the benchmark Sensex and Nifty reached new record highs, driven by gains in metal and FMCG shares, along with firm global trends and foreign fund inflows.

The BSE Sensex closed at 74,119.39, marking a new peak, with a marginal gain of 0.05%. The Nifty also achieved a record closing at 22,493.55, rising by 0.09%. The broader market saw a 0.70% increase in the BSE smallcap gauge and a 0.39% rise in the midcap index.

Among the sectoral indices, metal, capital goods, commodities, FMCG, telecommunication, and industrials advanced, while auto, bankex, oil & gas, and realty lagged behind.

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