A list of four stocks / securities was subject to the Futures and Options (F&O) ban by the National Stock Exchange (NSE) on Wednesday, September 29, 2021. These securities are banned in the F&O segment because they have crossed 95% of the market wide position limit (MWPL), according to the NSE.
The four stocks on NSE’s F&O ban list are Vodafone Idea, Zee Entertainment Enterprises (ZEEL), Sun TV and Steel Authority of India (SAIL). Indian Railway Catering and Tourism Corporation (IRCTC), which was on the last sessions list, is no longer banned for today. Punjab National Bank (PNB), Indiabulls Housing Finance, Escorts, Canara Bank are also not on the banned list on Wednesday.
The derivative contracts on the mentioned securities have exceeded 95% of the position limit at market level and are therefore currently put on 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, the F&O contracts of this share enter a blackout period if the opening interest exceeds 95% of the MWPL.
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