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PVR among three stocks under F&O ban for Tuesday

Vodafone Idea and Sun TV Network continue to be on the F&O ban list released by the exchange on Monday evening.

March 29, 2022 / 07:51 AM IST
 
 
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A total of three stocks are banned from trading in the futures and options segment by the National Stock Exchange on March 29 after these securities crossed 95 percent of the market-wide position limit.

The exchange has added one fresh stock to the list and removed three for Tuesday.

PVR, which announced a merger with its competitor Inox Leisure, is the latest addition to the ban list which dropped Indiabulls Housing Finance, L&T Finance Holdings, and SAIL.

Vodafone Idea and Sun TV Network continue to be on the F&O ban list released by the exchange on Monday evening.

Derivative contracts in these six securities crossed 95 percent of the market-wide position limit and hence they are on the ban list, the NSE said.

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"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.

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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