Indian Railway Catering and Tourism Corporation (IRCTC), National Aluminium Company Limited (Nalco), Canara Bank, Punjab National Bank (PNB), Indiabulls Housing Finance, Sun TV and Steel Authority of India (SAIL) continue to be among the nine stocks/securities that have been put in the futures and options (F&O) ban for trade on Tuesday, October 12, 2021 by the National Stock Exchange (NSE).
Whereas two new stocks, Bank of Baroda (BoB) and Bharat Heavy Electricals Limited (BHEL) have been added to the F&O ban stocks list for today by the stock exchange. These securities are banned under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.
“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 stock exchange said. “Any increase in open positions shall attract appropriate penal and disciplinary action,” NSE added.
The derivative contracts in the mentioned securities have crossed 95% of the market-wide position limit and are therefore have been currently put in the ban period by the stock exchange, said NSE.
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: Bank of Baroda, IRCTC, BHEL among 9 stocks under NSE’s F&O ban list