Sun TV Network, 2 others on NSE ban list for F&O trade today

Media company Sun TV Network has been added to the list of stocks that are under the F&O ban for June 23 by the National Stock Exchange after the stock crossed 95 percent of the market-wide position limit.

Sun TV has seen the highest short build-up among 122 stocks, which corrected nearly 9 percent to close at Rs 408.6 amid high volumes on the NSE. On the technical front, it has seen a formation of large bearish candle as the closing was way lower than opening levels.

Indiabulls Housing Finance and RBL Bank are already on the list even as the former fell 3 percent to Rs 98.9 and the latter gained nearly 3 percent at Rs 85.55.

If derivative contracts in a security cross 95 percent of the market-wide position limit, they end up on the ban list, the NSE said.

“All clients/members shall trade in the derivative contracts of the said security only to decrease their positions through offsetting positions. Any increase in open positions shall attract appropriate penal and disciplinary action,” it said.

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

The market-wide position limit, which is set by 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, 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.