The National Stock Exchange (NSE) has imposed a ban on trading in the futures and options (F&O) segment for ten specific stocks as of October 18, 2023. This action was taken due to these stocks exceeding the market-wide position limit (MWPL) of 95%. However, it’s important to note that despite the F&O ban, these stocks are still available for trading in the cash market.
The ten stocks that have been placed under the F&O ban list for October 18 are:
- Balrampur Chini Mills
- BHEL (Bharat Heavy Electricals Limited)
- Delta Corp
- GNFC (Gujarat Narmada Valley Fertilizers & Chemicals Limited)
- Hindustan Copper
- Indiabulls Housing Finance
- India Cements
- Manappuram Finance
- MCX (Multi Commodity Exchange of India Limited)
- SAIL (Steel Authority of India Limited)
The NSE regularly updates the list of securities in the F&O ban based on the MWPL. When derivative contracts for these securities cross the 95% threshold of the MWPL, they are placed under the F&O ban period, following the stock exchange’s regulations. During this ban period, clients and members are permitted to trade in these derivative contracts, but only for the purpose of reducing their existing positions by creating offsetting positions. Any attempt to increase open positions during the F&O ban will result in appropriate penal and disciplinary action by the stock exchange.
It’s important to understand that under the F&O ban, no fresh positions can be initiated for any of the F&O contracts related to the specified stocks. This restriction aims to control speculative trading and maintain market stability.
In recent market developments, Indian equity benchmark indices have shown resilience by bouncing back on the previous day after experiencing three consecutive days of decline. This rebound was attributed to a recovery in global markets. The Sensex, representing the 30-share BSE index, increased by 0.39%, closing at 66,428.09 points. The Nifty, representing the broader NSE index, gained 0.40% to end at 19,811.50 points. The broader market also performed well, with the BSE smallcap gauge rising by 0.70% and the midcap index climbing by 0.39%.
The Indian rupee displayed strength by consolidating within a narrow range and concluding the day with a modest gain of 3 paise. It closed at 83.24 against the US dollar. The rupee’s trading range for the day was between 83.22 and 83.26 at the interbank foreign exchange market.
These recent market dynamics reflect the resilience and adaptability of India’s financial markets in response to both domestic and global factors.
