A list of two stocks/securities have been put under the futures & options (F&O) ban by the National Stock Exchange (NSE) for trade on Tuesday, September 7, 2021. These securities are banned under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL).
The two stocks in ban for trade on F&O today are Indiabulls Housing Finance and National Aluminium Company (Nalco). The derivative contracts in the mentioned security has crossed 95% of the market-wide position limit and are currently in the ban period.
Indiabulls Housing, one of India’s leading housing finance companies (HFC), is part of Indiabulls Group and offers home loans in the affordable housing segment. Whereas, Nalco is a Navratna CPSE under the Ministry of Mines. The company has integrated and diversified operations in mining, metal and power. The government holds 51.28% equity of Nalco.
“It is hereby informed that all clients/members shall trade in the derivative contracts of said security only to decrease their positions through offsetting positions,” the exchange said. “Any increase in open positions shall attract appropriate penal and disciplinary action,” it added.
No fresh positions are allowed for any of the F&O contracts in that particular stock when it is under the F&O ban period. The MWPL (market-wide position limit) is set by the stock exchanges which is the maximum number of contracts that can be open at any time (Open Interest), therefore, the F&O contracts of that stock enter a ban period if the open interest crosses 95% of the MWPL.
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Read More: Indiabulls Housing Finance, Nalco under F&O ban on NSE today