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Vodafone Idea under F&O ban on December 3

Under the ban, no fresh futures or options contracts can be bought or sold. If traders take fresh positions, they will be penalised by the NSE.

December 03, 2021 / 08:34 AM IST
Vodafone Idea | Representative image

Vodafone Idea | Representative image

 
 
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Beleaguered telecom operator Vodafone Idea Limited (VIL) and Indiabulls Housing Finance Limited have been put under ban for trade under futures and options segment on December 3 by the National Stock Exchange (NSE). According to the exchange, these securities have crossed 95 percent of the market-wide position limit (MWPL) and are currently in the ban period.

"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 ..." NSE said.

The exchanges set an MWPL for all stocks that trade in the F&O segment. It is the maximum number of contracts that can be open at any time (Open Interest). If the open interest of any stock exceeds 95 percent of the MWPL, all F&O contracts of that stock enter a ban period.

Under the ban, no fresh futures or options contracts can be bought or sold. If traders take fresh positions, they will be penalised by the NSE. Traders with open positions can reduce their positions by taking an offsetting position. To put it in perspective, if a trader is long 100 lots of futures, he can sell up to 100 lots of futures, as long as there is a buyer for those many lots. Similarly, somebody who is short 100 lots can buy up to 100 lots.

On Thursday, shares of Vodafone Idea settled flat at Rs 12.80 apiece, while Indiabulls Housing ended at Rs 254.10, up 3.6% from its previous close on the NSE. The benchmark Nifty50 closed at 17,401.65, up 234.75 points or 1.37%.
first published: Dec 3, 2021 08:34 am

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