On April 23, 2024, the National Stock Exchange (NSE) imposed a trading ban on six stocks under the futures and options (F&O) segment. This ban was implemented due to these stocks exceeding 95% of the market-wide position limit (MWPL). The affected stocks include SAIL and ZEEL.
Although banned from F&O trading, these stocks will remain available for trading in the cash market. The NSE regularly updates the list of securities subject to the F&O ban.
For the specified securities, derivative contracts have surpassed 95% of the MWPL, prompting the stock exchange to enforce the ban. According to the NSE, “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.”
During the F&O ban period, no new positions are permitted in any F&O contracts for the affected stocks. On Monday, the Sensex and Nifty indices closed in the green, ending the trading session on a positive note. The BSE Sensex gained 560.29 points, settling at 73,648.62, while the Nifty rose by 189.40 points, closing at 22,336.40. The NSE Nifty closed up by 1.01%, while the Sensex concluded with a 0.77% increase. All sectoral indices showed gains, with the PSU Bank index leading with a 2.96% rise, followed by the Consumer Durables index at 2.36%.
