IRCTC, Vodafone Idea, Indiabulls Housing continue to be among stocks on NSE’s F&O ban list

A list of six stocks / securities was subjected to the ban on trading in futures and options (F&O) by the National Stock Exchange (NSE) on Monday, October 18, 2021. These securities are prohibited in the F&O segment because they have crossed 95% of the market wide position limit (MWPL), according to the NSE.

Indian Railway Catering and Tourism Corporation (IRCTC), Bank of Baroda (BoB), Indiabulls Housing Finance, Sun TV continue to be on the list of prohibited actions by F&O. Whereas Bharat Heavy Electricals Limited (BHEL) was added to the list by the exchange today.

Meanwhile, the National Aluminum Company Limited (Nalco), the Punjab National Bank and the Steel Authority of India (SAIL) which were banned in the previous session were excluded from the list on Monday.

Derivatives on the mentioned securities have exceeded 95% of the market-wide position limit and are therefore currently put on blackout by the exchange, NSE said.

“It is hereby informed that all clients / members will only trade derivative contracts of said securities to reduce their positions through offsetting positions,” the exchange said. “Any increase in open positions will result in appropriate criminal and disciplinary action,” NSE added.

No new position is allowed for any of the F&O contracts in that particular stock when it is under the F&O blackout period. The MWPL (market-wide position limit) is set by the stock exchanges, which corresponds to the maximum number of contracts that can be opened at any time (Open Interest). Therefore, the M&O contracts of this share enter a blackout period if the open interest crosses 95% of the MWPL.

On the other hand, the NSE recently announced the inclusion of eight new shares which will be available for trading in the M&O segment from October 29, subject to meeting the eligibility criteria of the Quarter sigma calculation cycle of October 2021.

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