September 15: NSE Imposes F&O Trading Ban on 12 Stocks Exceeding Position Limits

15 Sep 2023 , 10:26 AM

On Friday, September 15, 2023, the National Stock Exchange (NSE) imposed a ban on trading in the futures and options (F&O) segment for a total of 12 stocks. This action was taken because these securities exceeded 95% of the market-wide position limit (MWPL) set by the NSE. Despite the F&O ban, these stocks will remain available for trading in the cash market.

The 12 stocks included in the F&O ban list are Steel Authority of India (SAIL), Balrampur Chini Mills, Zee Entertainment Enterprises Ltd (ZEEL), BHEL, India Energy Exchange (IEX), Manappuram Finance, India Cements, Delta Corp, National Aluminium Company, REC Ltd, Hindustan Copper, and Indiabulls Housing Finance. The NSE updates this list of restricted securities in the F&O segment daily.

The derivative contracts associated with these stocks have crossed the 95% MWPL threshold, leading to their placement in the F&O ban period, as per the NSE’s announcement.

The NSE emphasized that clients and members can only trade in derivative contracts for these securities to reduce their existing positions through offsetting positions. Any attempt to increase open positions will result in appropriate penal and disciplinary action.

During the F&O ban period, no fresh positions can be initiated for any of the F&O contracts related to these particular stocks, as mandated by the stock exchanges.

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