By Malvika Gurung
Investing.com -- The National Stock Exchange (NSE) has added a new stock to its Futures and Options (F&O) ban list on August 1, 2023, while retaining one stock from the previous session.
The leading diversified Non-Banking Financial Company (NBFC) Piramal Enterprises (NS:PIRA) is the latest entrant to the domestic stock exchange’s F&O ban list in Tuesday’s trade, while NSE has continued to hold India’s third largest housing finance company Indiabulls Housing Finance (NS:INBF) under its ban list today.
The two 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.