A total of six shares/securities have been placed under Futures and Options (F&O) restrictions for trading on Wednesday, October 27, 2021. National Stock Exchange (NSE). According to NSE, these stocks have been banned under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL).
Indian Energy Exchange in six shares (IEX), Indiabulls Housing Finance and Steel Authority of India (SAIL), National Mineral Development Corporation (NMDC) and Sun TV continue to be banned.
Whereas, PSU lender Canara Bank has been added to the list by the stock exchange for F&O stock ban for today. Meanwhile, Escorts, which was under F&O ban in the last season, was left out of the list on Wednesday.
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 has crossed 95%.
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