By Malvika Gurung
Investing.com -- The National Stock Exchange added one stock to its Futures and Options (F&O) ban list on May 19, 2023, extending its recent trend of rejigging the list, while retaining seven stocks from the previous session.
The NBFC L&T Finance Holdings (NS:LTFH) (subsidiary of L&T) is the latest entrant on the domestic bourse’s F&O ban list, taking the total count on the list to a whopping eight on Friday.
The seven stocks that continue to remain under the ban list on May 19 include the:
- loan provider LIC Housing Finance (NS:LICH),
- fashion retailer Aditya Birla Fashion (NS:ADIA)
- leading sugar manufacturer Balrampur Chini Mills (NS:BACH),
- NBFC Manappuram Finance (NS:MNFL),
- state-owned lender Punjab National Bank (NS:PNBK),
- gaming and hospitality company Delta Corp (NS:DELT), and
- fertilizers manufacturer Gujarat Narmada Valley Fertilizers & Chemicals (NS:GNFC)
The aforementioned securities have exceeded 95% of the market-wide position limit (MWPL), thereby banned for trade under the futures and options segment in the day, and shall continue remaining on the list until their positions fall below 80%.
While on the Futures and Options ban list, no new/fresh F&O positions can be bought or sold for the stock(s), else that trader gets penalised. Traders with existing positions in that security can unwind their positions.
Moreover, the market-wide position limit is set by the stock exchanges.
The NSE directs all clients/members to trade in the derivative contracts of the aforementioned securities only to decrease their positions through offsetting positions.
The leading stock exchange updates the list of securities in the F&O ban for trade every day.