NSE Adds Navaratna PSU to F&O Ban List: Count Rises to 3

By Malvika Gurung

Invetsing.com -- The National Stock Exchange has added a new stock under its Futures and Options (F&O) ban list for trade on March 24, 2023, while retaining two stocks from previous sessions.

The state-owned aerospace and defence player Hindustan Aeronautics (NS: HIAE ) (HAL) is the latest addition to the domestic bourse’s F&O ban list on Friday.

The biopharmaceutical company Biocon (NS: BION ) and the mortgage lender Indiabulls (NS: INBF ) Housing Finance continue to remain under the stock exchange’s ban list.

The Navratna PSU has come under focus after the Government of India proposed to sell an up to 3.5% stake in the company through an offer for sale, valued at Rs 2,867 crore.

Read Also: HAL Cracks 6% As Govt Proposes to Sell Stake, Here’s Why

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.