NSE Imposes F&O Ban on Five Stocks Over 95% MWPL Breach

27 Dec 2023 , 10:03 AM

On December 27, 2023, the National Stock Exchange (NSE) imposed a ban on the trade of five stocks in the futures and options (F&O) segment.

The decision to put these stocks under the F&O ban was based on their crossing of 95% of the market-wide position limit (MWPL), as reported by the NSE. 

The affected stocks include Balrampur Chini Mills, Delta Corp, Hindustan Copper, National Aluminium Company Limited, and RBL Bank. While these stocks are restricted from trading in the F&O segment, they remain available for trading in the cash market.

The NSE regularly updates the list of securities under the F&O ban on a daily basis. According to the NSE, derivative contracts for the mentioned securities have surpassed the 95% MWPL, leading to their inclusion in the ban period.

The NSE emphasized that market participants should only engage in derivative contracts for the specified securities to reduce their positions through offsetting actions.

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

During the F&O ban period, no new positions are permitted for any F&O contracts associated with the affected stocks, in accordance with stock exchange regulations.

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