At least five stocks/securities have been placed under Futures and Options (F&O) restrictions National Stock Exchange (NSE) For business on Tuesday, September 14, 2021. 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).
“It is hereby informed that all the clients/members shall trade in derivative contracts of the said security 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.
Canara Bank, Exide Industries, LIC Housing Finance, Indiabulls Housing Finance, and National Aluminum Company (NALCO) are the stocks that are today under F&O restrictions as the derivative contracts in the mentioned securities have crossed 95% of the market-wide position limits and So currently put in the ban period.
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, the F&O contracts of that stock enter a restriction period if the open interest MWPL exceeded 95%.
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