A total of five shares have been banned for trading under the Futures and Options (F&O) segment as on Monday, January 24, 2022. National Stock Exchange (NSE), 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).
F&O restrictions continue on Vodafone Idea, Indiabulls Housing Finance, Escorts, Bharat Heavy Electricals Limited (BHEL) while Granules India which was part of the list in previous sessions is out of today’s list.
On the other hand, PSU metal stock National Aluminum Company (Nalco) has been added to the list of shares under F&O ban by the stock exchange for Monday. 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. The MWPL (market-wide position limit) is set by the stock exchanges which is the maximum number of open contracts (open interest) at any given time, therefore, F&O contracts of that stock enter a restriction period if the open interest is higher than the MWPL. has exceeded 95%.
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