By Malvika Gurung
Investing.com -- One new stock has been placed under the Futures and Options (F&O) ban list for trade by the National Stock Exchange on Friday. It is the public sector lender Punjab National Bank (NS: PNBK ).
The lender’s stock plunged almost 14% on Thursday, hitting a fresh 52-week low in the session at Rs 28.45/share, following a flop March earnings report, as its slippages in the period skyrocketed 110.8% QoQ.
The other stock already under the F&O ban list is the housing finance company Indiabulls Housing Finance (NS: INBF ). The stock smartly rebounded 6.75%, after nosediving 21% in the previous session.
Both the stocks have exceeded 95% of the market-wide position limit (MWPL), thereby placing them under the F&O ban list by NSE. The stock exchange updates the list every day.
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.
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