Only one stock has been banned for trading on Friday, August 5, 2022 by the National Stock Exchange (NSE) under the Futures and Options (F&O) segment. According to NSE, the over the counter has been banned under the F&O segment as it has crossed 95% of the market-wide position limit (MWPL).
Auto Stock will continue to be part of Escorts F&O Restrictions List by stock exchange for today. NSE updates the list of securities in F&O restrictions for trading daily. Escorts Group is a leading Tractor Manufacturing Company in India leading in manufacturing of Mobile Cranes, Tractors, Railway Equipments, Construction etc.
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 by way of offsetting positions 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 open contracts at any given time (open interest), therefore, the F&O contracts of that stock enter a restriction period if the open interest is MWPL. exceeded 95%.
Meanwhile, Indian indices may see a positive start. Benchmark indices Sensex and Nifty on Thursday closed marginally lower in their six-session rally. For Friday, SGX Nifty, Singapore Nifty which is the Indian Nifty traded on the Singapore Stock Exchange indicates a higher opening for Indian. stock market today,
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