Stock Under F&O Ban on NSE for 5th Consecutive Session

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Stock Under F&O Ban on NSE for 5th Consecutive Session

By Aayush Khanna

On November 8, 2023, GNFC (Gujarat Narmada Valley Fertilizers & Chemicals), a small-cap fertilizer and agrochemicals company with a market capitalization of INR 10,621 crore again found itself in a trading ban in the futures and options (F&O) segment, as imposed by the National Stock Exchange (NSE). This action was taken because the security breached 95% of the market-wide position limit (MWPL), in accordance with NSE regulations. However, it's important to note that GNFC remains available for trading in the cash market.

This marks the fifth consecutive session that GNFC has been placed under the F&O ban, making it the sole stock under NSE's F&O radar since the beginning of this month.

The NSE routinely updates its list of securities in the F&O ban, considering those whose derivative contracts have exceeded 95% of the MWPL. During the ban period, no new positions are allowed to be initiated for any of the F&O contracts related to the affected stock, as determined by the stock exchange.

However, existing positions can easily be squared off with either of the buy/sell orders.

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