No less than five stocks / securities were subject to the ban on futures and options (F&O) by the National Stock Exchange (NSE) to be traded on Tuesday, September 14, 2021. These securities are prohibited in the F&O segment because they crossed 95% of the market wide position limit (MWPL), according to the NSE.
“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.
Canara Bank, Exide Industries, LIC Housing Finance, Indiabulls Housing Finance and National Aluminum Company (Nalco) are the stocks currently prohibited by F&O, as derivative contracts on the mentioned securities have exceeded 95% of the position limit at the scale of the market. market and are therefore currently placed in a blackout period.
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.
Never miss a story! Stay connected and informed with Mint. Download our app now !!