Two new stocks have been added to the Futures and Options (F&O) ban list for trade by the National Stock Exchange on Aug 8, 2022, taking the total to three stocks, a report by investing.com stated.
While the tractor manufacturer Escorts continues to remain under the F&O ban list, the gaming and hospitality stock Delta Corp and the leading sugar manufacturer Balrampur Chini are the two fresh additions to the list, informed the report.
It also noted that two of the three stocks under the F&O ban list for today are among the ace investor Rakesh Jhunjhunwala's portfolio stocks, namely Escorts and Delta Corp.
The three securities have exceeded 95 percent of the market-wide position limit (MWPL), thereby banned for trade under the futures and options segment in the day, and shall continue remaining on the list until their positions fall below 80 percent, as per NSE.
“All clients/members shall trade in the derivative contracts of the said security only to decrease their positions through offsetting positions. Any increase in open positions shall attract appropriate penal and disciplinary action,” it said.
While on the Futures and Options ban list, no new/fresh F&O positions can be bought or sold for the stock(s), else that trader gets penalised. Traders with existing positions in that security can unwind their positions, informed the report.
Moreover, the market-wide position limit is set by the stock exchanges, it added.
It is important to note that the NSE directs all clients/members to trade in the derivative contracts of the aforementioned securities only to decrease their positions through offsetting positions.
Normal trading in security resumes only after the aggregate open interest across exchanges comes down to 80 percent or below the market-wide position limit, the NSE said.
