NSE Restricts Trading on Two Stocks in F&O Ban for Exceeding Position Limits

28 Dec 2023 , 10:10 AM

On December 28, 2023, the National Stock Exchange (NSE) imposed a trade ban on two stocks within the futures and options (F&O) segment due to exceeding 95% of the market-wide position limit (MWPL).

The affected stocks, National Aluminium Company Limited and RBL Bank, are included in the F&O ban list for that specific trading day.

Despite the F&O ban, these stocks remain available for trading in the cash market. The NSE updates the F&O ban list on a daily basis, reflecting changes in market conditions and position limits.

The ban specifically applies to derivative contracts associated with the mentioned securities, as they have surpassed the 95% MWPL threshold, leading to the prohibition period.

Traders and members are advised to engage in derivative contracts of the affected securities solely for the purpose of reducing their positions through offsetting measures. Any increase in open positions during the ban period may result in penal and disciplinary actions.

During the F&O ban period, the stock exchanges do not permit the initiation of fresh positions for any F&O contracts related to the specified stocks.

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