A total of six stocks / securities were subject to the Futures and Options (F&O) trading ban on Wednesday, October 27, 2021 by the National Stock Exchange (NSE). These stocks are prohibited in the M&O segment because they have exceeded 95% of the market wide position limit (MWPL), according to the NSE.
Of the six stocks, Indian Energy Exchange (IEX), Indiabulls Housing Finance and Steel Authority of India (SAIL), National Mineral Development Corporation (NMDC) and Sun TV remain under the ban.
Whereas the PSU lender Canara Bank has been added to the list by the stock exchange for the ban on F&O shares for today. Meanwhile, Escorts, which was under the F&O ban in the previous session, dropped from the list on Wednesday.
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.
“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.
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.
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