September 9: Nine Stocks Placed Under F&O Trade Ban by NSE

8 Sep 2023 , 10:25 AM

The National Stock Exchange (NSE) has imposed a trade ban on nine stocks in the futures and options (F&O) segment for Friday, September 8, 2023. This action was taken because these securities exceeded the 95 % market-wide position limit (MWPL), as reported by the NSE. Importantly, these stocks will still be available for trading in the cash market.

The nine stocks subjected to the F&O trade ban include Steel Authority of India (SAIL), Punjab National Bank (PNB), Manappuram Finance, BHEL, India Cements, Delta Corp, Hindustan Copper, Balrampur Chini Mills Limited, and Indiabulls Housing Finance.

The NSE routinely updates the list of securities in the F&O ban for trade. According to the NSE, derivative contracts linked to these stocks have surpassed the 95 % MWPL threshold, leading to their inclusion in the ban period.

The NSE has issued guidelines stating that traders and members can only engage in derivative contract trading for these securities to reduce their positions through offsetting positions. Any increase in open positions will result in appropriate penalties and disciplinary action.

During the F&O ban period, no fresh positions are allowed for derivative contracts associated with these specific stocks. It’s important to note that trading in the cash market for these stocks remains unaffected, and this restriction applies specifically to F&O trading.

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