A total of seven shares/securities are placed under Futures and Options (F&O) restrictions for trading. National Stock Exchange (NSE) On Wednesday, October 13, 2021. These securities have been banned under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL) as per NSE.
The seven stocks are Indian Railway Catering and Tourism Corporation (IRCTC), National Aluminum Company Limited (NALCO), Bank of Baroda (BOB), Punjab National Bank (PNB), Indiabulls Housing Finance, Sun TV and Steel Authority of India (SAIL), Which remain in the list of F&O restricted shares.
On the other hand, Bharat Heavy Electricals (BHEL) and Canara Bank, which were on the list yesterday, are out of the stock ban list of NSE for today.
The stock exchange said, “It is hereby informed that all the clients/members shall trade in derivative contracts of the said securities only by way of offsetting positions to reduce their position.” “Any increase in open positions will attract appropriate penalty and disciplinary action,” the NSE added.
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.
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 exceeded 95%.
On the other hand, NSE recently announced the induction of eight new stocks, which will be made available for trading in the F&O segment from October 29, subject to fulfilling the eligibility criteria of the quarter sigma calculation cycle of October 2021.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.