The same ten stocks/securities, which were placed on the Futures and Options (F&O) Restricted Stock List on Wednesday, continue to be under ban for trading by the National Stock Exchange (NSE) on Friday, October 22, 2021. 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).
There are ten stocks under F&O ban on NSE today: Indian Railway Catering and Tourism Corporation (IRCTC), Punjab National Bank (PNB), Vodafone Idea, Sun TV, National Aluminum Company Limited (NALCO), Escorts, Amara Raja Batteries Limited, L&T Finance Holdings, Tata Power and Steel Authority of India (SAIL).
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 by way of offsetting positions only to reduce their position,” 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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