By Malvika Gurung
Investing.com — The National Stock Exchange (NSE) has rejigged its Futures and Options (F&O) ban list on September 5, 2023, adding four stocks to the list and retaining one from the previous session.
The domestic bourse placed a total of five stocks under its F&O ban list on Tuesday.
The leading stock exchange has held housing finance stock Indiabulls Housing Finance (NS:) to its F&O ban list on Sept 5, while the latest entrants on the list in today’s session include the:
- state-owned engineering giant BHEL (NS:)
- PSU mining major Hindustan Copper (NS:)
- cement manufacturer India Cements (NS:)
- leading sugar manufacturer Balrampur Chini Mills (NS:)
The five securities have exceeded 95% of the market-wide position limit (MWPL), thereby banned for trade under the futures and options segment in the day, and shall continue remaining on the list until their positions fall below 80%.
While on the Futures and Options ban list, no new/fresh F&O positions can be bought or sold for the stock(s), else that trader gets penalised. Traders with existing positions in that security can unwind their positions.
Moreover, the market-wide position limit is set by the stock exchanges.
The NSE directs all clients/members to trade in the derivative contracts of the aforementioned securities only to decrease their positions through offsetting positions.
The leading stock exchange updates the list of securities in the F&O ban for trade every day.