On Tuesday, May 17, 2022, three stocks have been banned for trading under the Futures and Options (F&O) segment by the 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).
GNFC (Gujarat Narmada Valley Fertilizers & Chemicals), Indiabulls Housing Finance and Punjab National Bank (PNB) As of today there are three stocks under F&O restriction by the stock exchange. 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 contracts that can be open (open interest) at any given time, therefore, F&O contracts of that stock enter a restriction period if open interest MWPL has crossed 95%.