Delta Corp joins RBL Bank on NSE ban list for F&O trading on Tuesday

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One more stock has been added to the list of stocks under F&O ban by the National Stock Exchange in current series for April 12, as it has crossed 95 percent of the market-wide position limit.

RBL Bank continues to be banned from trading in futures and options, while gaming and hospitality company Delta Corp is the latest addition to the F&O ban list. With this, now two stocks are on the ban list.

Delta Corp shares fell nearly 2 percent on Monday. The company declared its quarterly earnings after market hours on Monday. It reported profit at Rs 48.11 crore for the quarter ended March 2022, which fell nearly 17 percent compared to profit of Rs 57.77 crore a year ago. Its revenue for the quarter has seen a moderate growth of 3 percent YoY at Rs 218.32 crore, up from Rs 211.34 crore in corresponding period last year. The company also approved amalgamation of Daman Entertainment, and Daman Hospitality with itself.

If the derivative contracts in securities crossed 95 percent of the market-wide position limit, then they are 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 stocks under the F&O ban, but they 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.