NSE F&O Ban on 11 Stocks on March 18, 2024

18 Mar 2024 , 12:07 PM

On Monday, March 18, 2024, the National Stock Exchange (NSE) has imposed a ban on trading for 11 stocks within the futures and options (F&O) segment due to their market-wide position limit (MWPL) surpassing 95%. However, these securities remain available for trading in the cash market.

The stocks affected by the F&O ban are Aditya Birla Fashion and Retail, BHEL, Biocon, Hindustan Copper, Manappuram Finance, National Aluminium Company, Piramal Enterprises, RBL Bank, SAIL, Tata Chemicals, and ZEEL.

The NSE routinely updates the F&O ban list, with securities crossing the 95% MWPL threshold being subject to the ban period. According to the NSE, derivative contracts for these stocks have exceeded the specified limit, prompting their inclusion in the ban.

Traders and members are advised to only engage in derivative contracts for these securities to reduce their existing positions through offsetting actions. Any attempt to increase open positions during this period will result in appropriate penalization and disciplinary measures, as per NSE regulations.

During the F&O ban period, no new positions are permitted for any of the affected contracts, as dictated by stock exchange protocols.

Market indices, including the Sensex and Nifty, experienced a decline of over half a percent on the preceding Friday. This decline was attributed to significant losses in sectors such as oil and gas, auto, and energy, exacerbated by ongoing foreign capital outflows.