The National Stock Exchange has banned trading in two stocks on Friday, March 1, 2023, in the futures and options (F&O) segment (NSE). The F&O segment has banned the securities because they have reached 95% of the market-wide position limit (MWPL).
Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) and Indiabulls Housing Finance stocks are still on the stock exchange’s F&O ban list for today. Every day, the NSE changes the list of securities that are not allowed to be traded in F&O.
The derivative contracts for the listed securities have reached 95% of the market-wide position limit, so the stock exchange has banned them for the time being.
The stock exchange said, “It is hereby notified that all clients/members shall only trade in derivative contracts of said securities to decrease their positions by offsetting positions.” “Any increase in open positions will be met with the right penalties and punishments,” NSE said.
During the F&O ban period, no new positions are allowed in any of the F&O contracts for that stock. The stock exchanges set the market-wide position limit (MWPL), which is the maximum number of contracts that can be open at any given time (Open Interest). If the open interest of a stock goes over 95% of the MWPL, F&O contracts for that stock are banned for a certain amount of time.
SGX Nifty, which is the Indian Nifty traded on the Singapore Stock Exchange, points to a good start for the Indian stock market today.
Source: Team CurrencyVeda