By Malvika Gurung
Investing.com — The National Stock Exchange has further removed two stocks from its Futures and Options (F&O) ban list for trade on Dec 22, 2022, while continuing to retain three.
The public sector lender Punjab National Bank (NS:) and the gaming and hospitality stock Delta Corp (NS:) have exited the F&O ban list.
The domestic bourse continues to hold three stocks under its ban list on Thursday. They include the
- state-owned e-ticketing major for Indian Railways IRCTC (NS:),
- fertilizers manufacturer Gujarat Narmada Valley Fertilizers and Chemicals (NS:), and
- leading home finance company Indiabulls (NS:) Housing Finance.
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.