NSE Puts 12 Stocks Under Ban in F&O Segment on September 15, 2023.

NSE Puts 12 Stocks Under Ban in F&O Segment on September 15, 2023.

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In a significant development for traders and investors, the National Stock Exchange (NSE) has imposed a ban on the trading of 12 stocks in the futures and options (F&O) segment for Friday, September 15, 2023. This ban has been initiated due to these securities surpassing 95 percent of the market-wide position limit (MWPL), as reported by the NSE. However, it’s worth noting that these stocks will still be available for trading in the cash market.

The List of Restricted Stocks

The nine stocks that have found themselves on the NSE’s F&O ban list for Friday are Steel Authority of India (SAIL), Zee Entertainment, India Energy Exchange (IEX), Manappuram Finance, India Cements, Delta Corp, National Aluminium Company, REC Ltd, Hindustan Copper, and Indiabulls Housing Finance. It’s important to mention that the NSE regularly updates this list of restricted securities in the F&O segment.

Reason Behind the Ban

The trigger for this trading restriction lies in the derivative contracts of these securities, which have collectively exceeded 95 percent of the MWPL. Consequently, the NSE has taken action to curb speculative trading activities in these stocks. The NSE’s statement on this matter is clear: “It is hereby informed that all clients/members shall trade in the derivative contracts of said security only to decrease their positions through offsetting positions. Any increase in open positions shall attract appropriate penal and disciplinary action.

“No Fresh Positions Allowed

It’s important for traders to understand that during the F&O ban period imposed by the stock exchange, no fresh positions will be permitted for any of the F&O contracts associated with these restricted stocks. This move is aimed at maintaining market stability and preventing excessive speculation that could lead to undue volatility.

This decision by the NSE underscores the importance of adhering to trading limits and regulations to ensure a fair and orderly market. Traders and investors should exercise caution and stay informed about such developments to make informed decisions and manage their portfolios effectively.

About the Author

Asif Iqbal

Writer/ GRO

Asif Iqbal is a seasoned news writer with a passion for delivering the latest updates to the public. Currently serving as the senior writer at VoM News, a prominent news outlet known for its comprehensive coverage of diverse topics, Asif has established himself as a reliable source of information. With a keen eye for detail and a knack for storytelling, he consistently provides readers with well-crafted articles that cover a wide range of news categories. His dedication to journalistic integrity and his commitment to staying ahead of the news curve make him an invaluable asset to Vom News, ensuring that readers are always well-informed on the issues that matter most. You can find his work and stay updated on current events by visiting vomnews.in.