Nalco under NSE’s F&O Ban Stock List for Today


National Aluminum Company Limited (Nalco) is the only stock that was subject to the Futures and Options (F&O) ban for trading by the National Stock Exchange (NSE) on Wednesday, October 6, 2021. Script is banned in the M&O segment because it crossed 95% of the market-wide position limit (MWPL), according to the NSE.

Nalco is a Navratna CPSE under the Ministry of Mines. The company integrated and diversified its activities in the mining, metallurgical and energy sectors. Nalco shares have delivered multibagger returns this year, so far surging over 130% in 2021 (YTD or YTD). Meanwhile, the mining company’s shares have risen 220% in the past year.

The derivative contracts on the mentioned securities have exceeded 95% of the position limit at market level and are therefore currently placed in a blackout period by the stock exchange.

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

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, this share’s M&O contracts enter a blackout period if the opening interest exceeds 95% of the MWPL.

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