SAIL, Vodafone -; 3 others under NSE F-;O ban list

13 Jan 2022 , 12:42 PM

NSE added a total of five names to the list of stocks that are to be banned from trading in the futures & options segment soon after these securities crossed the limit of 95% market wide-position as set by the exchange.

SAIL was newly added to the F&O ban list on 13-January-2022, whereas Vodafone Idea, Indiabulls Housing Finance Limited, Delta Corp, and RBL Bank were already banned and continue to be on the list so far.

These five securities derivatives’ contracts have crossed 95% of the market-wide position limit, and hence NSE banned any further such contracts. As the ban continues, traders are not allowed to take fresh positions in stocks, but they are allowed to reduce their positions. This rule is basically articulated to reduce speculation in a stock.

“All clients/members shall trade in the derivative contracts of said security only to decrease their positions through offsetting positions. Any increase in open positions shall attract appropriate penal and disciplinary action,” the NSE said.

The market-wide position limit set by the stock exchanges is the maximum number of outstanding open positions (buy and sell) in the F&O contracts of security. If such a limit crosses the 95% mark, then the company’s F&O contracts enter the ban period.
NSE further added, “Normal trading in such securities will resume only after the said position comes down to 80% or below the market-wide position limit.”

Steel Authority of India Ltd is currently trading at Rs107.40 up by Rs2.45 or 2.33% from its previous closing of Rs104.95 on the BSE. The scrip opened at Rs105.70 and has touched a high and low of Rs108.45 and Rs105.30 respectively.