Nalco, Indiabulls Housing, IRCTC, 4 more actions on NSE’s F&O ban list for today


A total of seven stocks / securities were subject to a futures and options (F&O) trading ban by the National Stock Exchange (NSE) on Wednesday, October 13, 2021. These securities are banned in the F&O segment because they crossed 95% of the market wide position limit (MWPL), according to the 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 continue to appear on the list of prohibited stocks by F&O.

On the other hand, Bharat Heavy Electricals (BHEL) and Canara Bank, which were on the list yesterday, are excluded from the NSE’s ban list for today.

“It is hereby informed that all clients / members will only trade derivative contracts of said securities to reduce their positions through offsetting positions,” the exchange said. “Any increase in open positions will result in appropriate criminal and disciplinary action,” NSE added.

Derivatives on the mentioned securities have exceeded 95% of the market-wide position limit and are therefore currently put on blackout by the exchange, NSE said.

No new position is allowed for any of the F&O contracts in that particular stock when it is under the F&O blackout period. The MWPL (market-wide position limit) is set by the stock exchanges, which corresponds to the maximum number of contracts that can be opened at any time (Open Interest). Therefore, the M&O contracts of this share enter a blackout period if the open interest crosses 95% of the MWPL.

On the other hand, the NSE recently announced the inclusion of eight new shares which will be available for trading in the M&O segment from October 29, subject to meeting the eligibility criteria of the Quarter sigma calculation cycle of October 2021.

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