The National Stock Exchange (NSE) has imposed a trading ban on six stocks in the futures and options (F&O) segment for Wednesday, October 11, 2023, as they have exceeded 95% of the market-wide position limit (MWPL). However, it’s important to note that these stocks will remain available for trading in the cash market. The affected stocks are as follows:
- Delta Corp
- Indiabulls Housing Finance
- Punjab National Bank
- L&T Finance Holdings Ltd
- Manappuram Finance Ltd
- MCX
The NSE updates the list of securities under the F&O ban on a daily basis. When a stock is placed under the F&O ban period, no fresh positions are allowed for any of the F&O contracts related to that particular stock. Traders and investors can only decrease their positions through offsetting positions.
The derivative contracts in these securities have exceeded the 95% threshold of the MWPL, leading to their inclusion in the F&O ban list by the stock exchange. The NSE has reminded all clients and members that any increase in open positions during the ban period will result in appropriate penal and disciplinary action.
Despite these restrictions, the Indian stock indices experienced a strong rally on the previous trading day, with gains in financials, auto, and IT shares. The 30-share BSE Sensex surged by 0.87% or 566.97 points to close at 66,079.36, with 26 of its constituents ending in positive territory. The broader Nifty of the National Stock Exchange also saw a significant increase, rising by 0.91% or 177.50 points to settle at 19,689.85. This rally was driven by gains in stocks such as Coal India, Adani Ports, and Bharti Airtel.
Please note that trading in the cash market for the affected stocks is not impacted by the F&O ban and will continue as usual. Traders and investors should stay informed about updates in the F&O ban list to make informed decisions in the stock market.