The National Stock Exchange (NSE) has imposed a ban on five stocks in the futures and options (F&O) segment for Tuesday, September 26, 2023. These securities have been placed under the ban as they have crossed 95% of the market-wide position limit (MWPL), according to the NSE. However, it’s important to note that these stocks will still be available for trading in the cash market.
The five stocks that are part of the F&O ban list by the NSE for Tuesday are:
- Balrampur Chini Mills Ltd
- Canara Bank Ltd
- Granules India
- Hindustan Copper Ltd
- Indiabulls Housing Finance Ltd
The NSE routinely updates the list of securities in the F&O ban based on their market-wide position limits. When derivative contracts for a particular security exceed 95% of the MWPL, they are temporarily placed under the F&O ban period by the stock exchange.
The NSE has issued guidelines for trading during the F&O ban period. Clients and members are allowed to trade in derivative contracts of the affected security only to reduce their positions through offsetting positions. Any increase in open positions in these contracts during the ban period will result in appropriate penal and disciplinary action.
During the F&O ban period, no fresh positions are permitted in the affected stock’s F&O contracts. Traders and investors are advised to adhere to these guidelines to ensure compliance with exchange regulations.
On the previous trading day, Indian stock markets experienced marginal gains, with weak global cues weighing on investor sentiment. While financials, consumer durables, realty, and banking shares saw gains, they were offset by losses in IT, oil & gas, and pharma shares. The benchmark 30-share BSE Sensex rose during the session but ended with a minimal gain of 14.54 points, closing at 66,023.69. The broader NSE Nifty also settled with a marginal gain of 0.30 points, closing at 19,674.55.
Investors will closely monitor market developments and the impact of the F&O ban on the affected stocks as trading resumes.
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