From Monday, March 27, 2023, the National Stock Exchange has banned trading in two stocks in the futures and options (F&O) segment. (NSE). The securities have been banned from trading in the F&O segment because they over 95% of the Market-Wide Position Limit, according to the NSE.
Indiabulls Housing Finance and Hindustan Aeronautics Ltd (HAL) are the two stocks on the stock exchange's F&O ban list for today, while Biocon is not. Every day, the NSE updates its list of securities that are not permitted to be traded in F&O. The stock exchange has currently placed the derivative contracts in the mentioned securities that have exceeded 95% of the market-wide position limit under the ban period, according to NSE.
According to the stock exchange, all clients and members must only trade in derivative contracts based on the listed assets in order to offset positions and reduce positions. Any rise in open positions will result in the disciplinary and financial consequences, the NSE continued.
For any of the F&O contracts on that specific stock while it is in the F&O ban period, no new holdings are allowed. The MWPL (market-wide position limit), which is the maximum number of contracts that may be open at any given moment (open interest), is determined by the stock exchanges. As a result, if the open interest of a stock surpasses 95% of the MWPL, the F&O contracts for that stock enter a ban period.
While Singapore Exchange (SGX) Nifty, the Indian Nifty traded on the Singapore Stock Exchange, predicts a positive opening for the Indian stock market today, Indian indexes may see a higher start on Monday.