NSE Bans Trading on Five Stocks in F&O Segment Due to MWPL Crossing

5 Feb 2024 , 09:54 AM

On February 5, 2024, the National Stock Exchange (NSE) imposed a trade ban on five stocks in the futures and options (F&O) segment. Hindustan Copper, India Cements, Indus Towers, SAIL, and ZEE Entertainment Enterprises Ltd are the stocks placed under the F&O ban due to crossing 95% of the market-wide position limit (MWPL).

The securities were restricted under F&O as they exceeded 95% of the market-wide position limit (MWPL), as per the NSE guidelines. Despite the ban in the F&O segment, these stocks remain available for trading in the cash market.

The NSE stated that the derivative contracts of these securities surpassed the 95% MWPL, leading to the imposition of the ban period.

Any increase in open positions during the ban period will result in appropriate penal and disciplinary action, as per the NSE regulations. Fresh positions are not permitted for any of the F&O contracts associated with the specified stocks during the ban period imposed by the stock exchange.

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