At least eight shares/securities are placed under futures and options (F&O) restrictions for trading. National Stock Exchange (NSE) On Monday, September 20, 2021. These securities have been banned under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), according to NSE.
Indian Railway Catering and Tourism Corporation (IRCTC) is back on the NSE F&O ban list on Monday after exiting the previous trading session. Escorts, Sun TV, National Aluminum Company (Nalco), SAIL, Exide Industries remain among the stocks under the ban period, while Punjab National Bank (PNB) and Indiabulls Housing Finance have been added to the list today.
Derivative contracts in the mentioned securities have exceeded 95% of the market-wide position limits and are therefore currently put in the embargo period by the stock exchange.
“It is hereby informed that all the clients/members shall trade in derivative contracts of the said security 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. 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 exceeded 95%.
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