A total of three scrips have been banned by the National Stock Exchange (NSE) for trading under the futures and options (F&O) segment on Tuesday, January 17, 2023. These securities have been restricted under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per NSE.
Indiabulls Housing Finance, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) and L&T Finance Holdings Ltd are the stocks that remain part of the F&O ban list for today. NSE updates the list of securities in the F&O limit for trading daily.
“It is hereby informed that all clients/members shall trade in derivative contracts of the above securities only to reduce their positions by way of offsetting positions,” the stock exchange said. “Any increase in open positions will attract appropriate penal and disciplinary action,” NSE added.
NSE said that the derivative contracts in the mentioned securities have crossed 95% of the market wide position limit and hence are currently put in the ban period by the stock exchange.
No fresh positions are allowed for any F&O contract in a particular stock under the F&O restriction period. MWPL (Market-Wide Position Limit) is set by the stock exchanges which is the maximum number of contracts that can be opened at any point of time (Open Interest), therefore, F&O contracts of that stock enter into a restriction period if open Interest crossed 95% of MWPL.
Meanwhile, for Tuesday, the Indian indices may see a higher opening as SGX Nifty, Singapore Nifty which is the Indian Nifty traded on the Singapore Stock Exchange, indicated a flat-to-positive opening for the Indian. stock market today,
Know your inner investor
Do you have guts of steel or are you a victim of insomnia regarding your investments? Let’s define your investment approach.
catch all business News, market news, breaking news events and breaking news Update on Live Mint. download mint news app To get daily market updates.