NSE Levies Futures & Options Ban on Delta Corp, GNFC for Trading on November 9

NSE Levies Futures & Options Ban on Delta Corp, GNFC for Trading on November 9

VoM News Desk | November 8, 2023 | 10:11 PM IST | Breaking News | Follow on Google News

NSE Levies Futures & Options Ban on Delta Corp, GNFC for Trading on November 9

NSE Levies Futures & Options Ban on Delta Corp, GNFC for Trading on November 9

The National Stock Exchange (NSE) has placed two stocks under a ban for trading in the futures and options (F&O) segment for Thursday, November 9, 2023. This action comes as these stocks have surpassed the 95 percent threshold of the market-wide position limit (MWPL).

Restrictions on Trading Activities

The stocks affected by this restriction are Delta Corp and GNFC. While these securities are barred from trading in the F&O segment, they remain available for transactions in the cash market. The NSE issues daily updates on the list of securities under the F&O ban. During this ban period, the exchange mandates that all trades in these derivatives should only be executed to offset and reduce existing positions. The NSE warns that any attempt to increase open positions in these securities could lead to penalties and disciplinary action.

Market Context Amid F&O Bans

The implementation of this ban coincides with a period of market volatility, with Indian equity indices showing a marginal increase despite uncertain global market cues and continuous foreign fund outflows. The BSE Sensex and Nifty both saw slight upticks, with certain sectors such as realty and oil & gas demonstrating growth, while others like financial services and IT did not fare as well. This selective ban on certain stocks in the F&O segment reflects the NSE’s effort to maintain orderly market conditions and prevent excessive speculative activity.

VoM News Desk

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