By Malvika Gurung
Investing.com -- The National Stock Exchange (NSE) has rejigged its Futures and Options (F&O) ban list on August 4, 2023, removing one stock from the list and retaining three from the previous session.
India’s third largest housing finance company Indiabulls Housing Finance (NS:INBF) has exited the domestic stock exchange’s F&O ban list in Friday’s trade, while the NSE has continued to hold three stocks from yesterday.
They include the PSU miner Hindustan Copper (NS:HCPR), NBFC Piramal Enterprises (NS:PIRA), and the fertilizer manufacturer Gujarat Narmada Valley Fertilizers & Chemicals (NS:GNFC).
The three 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.