A total of four shares have been banned for trading under the Futures and Options (F&O) segment as on Monday, February 14, 2022. National Stock Exchange (NSE), According to NSE, these securities have been banned under the F&O segment as it has crossed 95% of the market-wide position limit (MWPL).
PSU stocks Bharat Heavy Electricals Limited (BHEL), Punjab National Bank (PNB), and Steel Authority of India (SAIL) which were placed under the stock ban list in the previous session will continue to be part of the list. At the same time, Tata Group’s stock Tata Power has been added under F&O restrictions by the stock exchange for today. 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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