F&O Segment Sees Six Stocks Under Ban

F&O Segment Sees Six Stocks Under Ban

VoM News Desk | November 15, 2023 | 11:57 PM IST | Breaking News | Follow on Google News

F&O Segment Sees Six Stocks Under Ban

F&O Segment Sees Six Stocks Under Ban

The National Stock Exchange (NSE) has imposed a trading ban on six stocks in the futures and options (F&O) segment for Thursday, November 16, 2023. This action was taken as these securities exceeded 95% of the market-wide position limit (MWPL). It’s important to note, however, that these stocks remain available for trading in the cash market. The affected stocks include Delta Corp, Hindustan Copper, Indiabulls Housing Finance, MCX, SAIL, and ZEEL.

Trading Restrictions and Guidelines

The NSE regularly updates its list of securities under the F&O ban, and the inclusion of these six stocks is a result of their derivative contracts crossing the 95% threshold of the MWPL. In light of this, the NSE has issued a notice stating, “All clients/members shall trade in the derivative contracts of said security only to decrease their positions through offsetting positions.” The exchange emphasizes that any increase in open positions will lead to penal and disciplinary actions. During the F&O ban period, no fresh positions are allowed for the F&O contracts of the affected stocks.

Market Performance Amidst F&O Ban

Interestingly, the broader equity market showcased a positive trend, with benchmark indices Sensex and Nifty experiencing significant gains. On Wednesday, both indices jumped by more than 1% due to heavy buying in sectors like IT, banking, and oil & gas. This surge was also influenced by a global stocks rally triggered by softer US inflation data. The BSE Sensex closed at nearly a four-week high, gaining 742.06 points or 1.14%, while the Nifty50 climbed by 231.90 points or 1.19%. The broader market saw an overall positive performance, with notable jumps in smallcap and midcap indices and strong showings in realty, IT, teck, auto, oil & gas, and energy sectors.

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