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NSE keeps only one stock on F&O ban list for expiry day

Derivative contracts in the said security crossed 95 percent of the market-wide position limit and hence it is on the ban list, the NSE said.

March 31, 2022 / 08:41 AM IST
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The National Stock Exchange has kept only one stock on the ban list for trading in the futures and options segment on March 31, the expiry day for March derivative contracts, after this stock crossed 95 percent of the market-wide position limit.

Vodafone Idea continued to be on the F&O ban list released by the exchange on Wednesday evening. The exchange, however, lifted ban on PVR and Sun TV Network and allowed for trading in the F&O segment.

Derivative contracts in Vodafone crossed 95 percent of the market-wide position limit and hence it is on the ban list, the NSE said.

"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,” the NSE said.

During the ban, traders are not allowed to take fresh positions in those stocks but can start reducing their positions. The F&O ban rule helps reduce speculation in a stock.

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The market-wide position limit, which is set by the stock exchanges, is the maximum number of outstanding open positions (buy and sell) in the F&O contracts of a security. If the open interest in a stock crosses 95 percent of the market wide position limit, then its F&O contracts enter the ban period.

Normal trading in a 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.



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first published: Mar 31, 2022 08:41 am
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