A total of five shares have been banned for trading by the National Stock Exchange (NSE) under the Futures and Options (F&O) segment on Monday, May 2, 2022. According to NSE, these securities have been banned under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL).
Gujarat Narmada Valley Fertilizers and Chemicals (GNFC), Indiabulls Housing Finance, Punjab National Bank (PNB), and Delta Corp are the stocks that continue to be under F&O ban, while Bharat Heavy Electricals (BHEL) has been added to the list. Share Market For today. NSE updates the list of securities prohibited for trading daily.
NSE said the derivative contracts in the mentioned securities have crossed 95% of the market-wide position limits and are therefore currently placed in the ban period by the stock exchange.
“It is hereby informed that all the clients/members shall trade in the derivative contracts of the said securities only to reduce their position by way of offsetting positions,” the stock exchange said. “Any increase in open positions will attract appropriate penalty and disciplinary action,” the NSE added.
No fresh positions are allowed for any F&O contract in that particular stock under the F&O restriction period. MWPL (market-wide position limit) is set by stock exchanges which is the maximum number of open contracts at any given time (open interest), therefore, F&O contracts of that stock enter a restriction period if the open interest is MWPL. has exceeded 95%.