A total of 11 stocks have been placed under the ban for trade on Friday, August 25, 2023, in the futures and options (F&O) segment by the National Stock Exchange (NSE). The decision to restrict trading in these securities stems from their crossing the 95% threshold of the market-wide position limit (MWPL), as stipulated by the NSE. Despite the F&O ban, these stocks will remain available for trading in the cash market.
The Restricted Roster
The stocks included in the F&O ban list for Friday encompass a diverse array of names, such as RBL Bank, GMR Infrastructure, BHEL, Metropolis Healthcare Ltd, Gujarat Narmada Valley Fertilizers And Chemicals Limited, Delta Corp, Hindustan Copper, India Cements, Indiabulls Housing Finance, Punjab National Bank, and Manappuram Finance.
Navigating the F&O Landscape
The NSE routinely updates the list of securities that are subjected to the F&O ban for trade. This decision is based on derivative contracts in the specified securities surpassing 95% of the market-wide position limit. The NSE has currently placed these contracts under the ban period.
Trading Guidelines and Restrictions
Clients and members are advised to engage in derivative contract trading for the mentioned securities exclusively to reduce their positions via offsetting positions. Any augmentation in open positions during this period will result in appropriate penal and disciplinary action, in accordance with NSE regulations.
During the F&O ban period, no fresh positions are permitted for any of the F&O contracts tied to the specific stocks. The trading landscape continues to evolve as these temporary restrictions are put in place to manage market-wide position limits effectively.
Disclaimer: The information provided here is for educational purposes only and should not be considered financial advice. Always conduct thorough research and consider consulting a financial professional before engaging in algorithmic trading.