NSE Bans 11 Stocks in F&O Trading on November 21, 2023, Crossing 95% Position Limit

21 Nov 2023 , 09:45 AM

On November 21, 2023, eleven stocks were placed under a ban for futures and options (F&O) trading by the National Stock Exchange (NSE) in India. The ban was implemented because these securities crossed 95% of the market-wide position limit (MWPL) set by the NSE.

Despite the F&O ban, these stocks remained available for trading in the cash market.

The list of stocks under the F&O ban included BHEL, Chambal Fertilisers and Chemicals, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, India Cements, Manappuram Finance, MCX, NMDC, RBL Bank, and ZEEL.

The NSE regularly updates the list of securities under F&O ban based on MWPL violations. During the ban period, traders and members were instructed to engage in derivative contracts only to decrease their positions through offsetting trades.

Any increase in open positions during the ban period could lead to appropriate penal and disciplinary action, as stated by the NSE.

This practice is aimed at preventing excessive speculation and maintaining market stability. Traders are expected to adhere to the guidelines set by the exchange during the ban period

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