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.
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.
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.

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

pic/AP

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.

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