RBL Bank Added to NSE's F&O Ban List as Shares Soar; Crosses Market-wide Position Limit

25 Aug 2023 , 10:10 AM

The National Stock Exchange (NSE) includes RBL Bank in its F&O ban list for August 25 due to crossing 95% of the market-wide position limit on the expiry day of August derivative contracts. RBL Bank’s shares surged 17% on August 24, closing at a five-month high of Rs 121.75 following a 6% rally in the previous session.

The bank’s board approved fundraising of up to Rs 3,000 crore through debt securities issuance earlier in the week. Two new members, Gopal Jain and Sivakumar Gopalan, were appointed to the board. If derivative contracts exceed 95% of the market-wide position limit, they enter the F&O ban list, restricting fresh positions.

During the ban, traders can only reduce positions, helping curb speculation in stocks. The market-wide position limit is the maximum open positions in F&O contracts of a security; crossing 95% initiates the ban period.Normal trading resumes when the aggregate open interest across exchanges drops below 80% of the market-wide position limit.

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