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RBL Bank, Escorts among 4 stocks under F&O ban on NSE

The normal trading in the security is resumed only after the aggregate open interest across exchanges comes down to 80 percent or below of the market wide position limit, the NSE said.

December 28, 2021 / 07:36 IST
     
     
    26 Aug, 2025 12:21
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    The National Stock Exchange has put four stocks under the ban for trade in the futures & options segment on December 28. These securities have crossed 95 percent of the market-wide position limit.

    RBL Bank is the latest stock to come under the F&O ban list of NSE. The private sector lender was severely under selling pressure, falling 18.48 percent to settle at Rs 140.95 on December 27, after the Reserve Bank of India on December 25 appointed Yogesh Dayal as an additional director on RBL's board and on the same day, Vishwavir Ahuja, managing director and CEO, went on a medical leave with immediate effect.

    The stock also witnessed highest short build-up among stocks, based on the open interest future percentage. An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions.

    Escorts, Indiabulls Housing Finance and Vodafone Idea are continued to be under the F&O ban list of exchange today.

    The derivative contracts in the above securities have crossed 95 percent of the market-wide position limit and hence, are currently under the ban list, said NSE.

    "It is hereby informed that 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 exchange said.

    During the ban period, traders are not allowed to take fresh positions in the stocks that are under the F&O ban, but they can start reducing their positions in the above-mentioned stocks by squaring off the said positions. With the rule of F&O ban, the exchange reduces the maximum speculation in the particular 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 particular security. If the open interest crosses 95 percent of the said market-wide position limit, then the F&O contracts of a particular security enters in ban period.

    The normal trading in the security is resumed only after the aggregate open interest across exchanges comes down to 80 percent or below of the market wide position limit, the NSE said.

    Moneycontrol News
    first published: Dec 28, 2021 07:36 am

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