On Monday, many stocks/securities were put under the futures and options (F&O) ban for trade by the National Stock Exchange (NSE) on Monday, September 20, 2021. These securities are prohibited under the F&O segment as they have crossed 95 per cent of the market-wide position limit (MWPL), as per the NSE.

Indian Railway Catering and Tourism Corporation (IRCTC) is back on the NSE F&O ban list after being out in the previous trading session. Escorts, Sun TV, National Aluminium Company (Nalco), SAIL, Exide Industries continue to be among the stocks under the ban. In contrast, Punjab National Bank (PNB) and Indiabulls Housing Finance have been added to the list today.

The derivative contracts in the mentioned securities have crossed 95% of the market-wide position limit and have been currently put in the ban period by the stock exchange.

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“It is at this moment informed that all clients/members shall trade in the derivative contracts of said security only to decrease their positions through offsetting positions,” the stock exchange said. “Any increase in open positions shall attract appropriate penal and disciplinary action,” NSE added.

No new positions are allowed for any F&O contracts in that stock under the F&O ban period. The MWPL (market-wide position limit) is set by the stock exchanges which is the maximum number of contracts that can be open at any time (Open Interest), therefore, the F&O warranties of that stock enter a ban period if the genuine interest crosses 95 per cent of the MWPL.

Stock Covered in the news

Indian Railway Catering and Tourism Corporation (IRCTC)-View Detailed Analysis

Punjab National Bank (PNB)-View Detailed Analysis