NSE Puts Six Stocks Under Ban in F&O Segment for September 25, 2023

NSE Puts Six Stocks Under Ban in F&O Segment for September 25, 2023 Image/The Mint

VoM News Desk | September 25, 2023 | 12:07 AM IST | Breaking News | Follow on Google News

NSE Puts Six Stocks Under Ban in F&O Segment for September 25, 2023

Six Stocks Face Trading Restrictions

In a move that has sent ripples through the financial markets, the National Stock Exchange (NSE) has imposed trading restrictions on six prominent stocks for Monday, September 25, 2023. These stocks have been included in the futures and options (F&O) ban list due to their breach of the market-wide position limit (MWPL) threshold of 95 percent, as reported by the NSE. However, it’s important to note that these stocks will still be available for trading in the cash market.

The Blacklisted Stocks

The six stocks affected by this trading ban are Canara Bank, Delta Corp, Granules India, Hindustan Copper, Indiabulls Housing Finance, and Manappuram Finance. This ban is not permanent but is subject to daily updates by the NSE, which assesses the MWPL levels.

Crossing the Threshold

The NSE has taken this action due to derivative contracts associated with these stocks exceeding the 95 percent MWPL limit. The exchange has made it clear that clients and members are permitted to trade in these derivative contracts solely for the purpose of reducing their existing positions. Any attempt to increase open positions during this ban period will result in penal and disciplinary consequences.

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Trading Restrictions Explained

During a trading ban in the F&O segment, no fresh positions can be initiated in these stocks’ F&O contracts. This regulation is put in place to curb speculative trading and maintain market stability.

Market Sentiment Amidst the Ban

On the preceding Friday, domestic benchmark indices Sensex and Nifty experienced their fourth consecutive session of declines. The downward trend was attributed to weak global cues, with U.S. Treasury yields reaching multi-year highs and a one percent increase in crude oil prices, which dampened investor sentiment for riskier equities. The Nifty 50 index closed with a loss of 68 points, or 0.34 percent, at 19,674.25, while the Sensex concluded at 66,009.15, down by 221 points, or 0.33 percent. Despite this, mid and small-cap stocks outperformed the benchmarks, with the BSE Midcap index closing lower by 0.14 percent and the BSE Smallcap index posting a marginal gain of 0.04 percent.

VoM News Desk

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