IRCTC among three stocks under F&O ban on NSE today

The three stocks that are today banned for trading on F&O are Indiabulls Housing Finance, Indian Railway Catering and Tourism Corporation (IRCTC) and National Aluminum Company (Nalco). Derivative contracts in the mentioned securities have exceeded 95% of the market-wide position limits and are currently in a sanction period.

“It is hereby informed that all clients/members shall trade in derivative contracts of the said security to reduce their positions only by way of offsetting positions,” the exchange said. “Any increase in open positions will attract appropriate penalties and disciplinary action,” the NSE said. .

IRCTC Shares have skyrocketed in the recent bull run, rising more than 120% this year (year-to-date). Since its stock market debut, IRCTC has delivered stupendous returns and the issue price of its IPO has increased 10 times since ₹320 per share. The state-owned company, which has a strong monopoly, entered the primary markets by listing in October 2019. It has 100% market share in the rail network. It is the only unit authorized to manage catering services in trains and major stationary units at railway stations.

Indiabulls Housing, one of India’s leading housing finance companies (HFCs), is a part of Indiabulls Group and offers home loans in the affordable housing segment. Whereas, NALCO is a Navratna CPSE under the Ministry of Mines. The company has integrated and diversified operations in mining, metals and power.

No fresh positions are allowed for any F&O contract in that particular stock under the F&O restriction period. The MWPL (market-wide position limit) is set by the stock exchanges, which is the maximum number of contracts that can open at any given time (open interest), therefore, F&O contracts for that stock enter a restriction period if the open interest MWPL has crossed 95%.