NSE ban list for today's F-;O trading

23 Jun 2022 , 11:53 AM

The National Stock Exchange has added Sun TV Network, a media firm, to the list of companies that are subject to the F&O restriction for June 23 after the stock exceeded the market-wide holding limit by 95%.

Among 122 equities, Sun TV saw the largest short build-up. It retreated by about 9% to settle at Rs. 408 in heavy trading on the NSE. Given that the closing was far below the starting levels, there was a huge bearish candle formation on the technical front.

Indiabulls Housing Finance which lost 3% to Rs 98.9 and RBL Bank which gained roughly 3% to Rs 85.55, both are already on the list.

According to the NSE, derivative contracts in securities are placed on the ban list if they exceed 95% of the market-wide position limit.

“All clients/members shall trade in the aforementioned security’s derivative contracts exclusively to reduce their positions through offsetting positions,” the contract states. Any rise in open posts will result in the necessary sanctions and discipline, it stated.

Traders are not permitted to open new positions in equities while the ban is in effect, but they may begin to close down existing positions. The F&O prohibition rule lessens stock speculating.

The maximum number of open positions (buy and sell) in a security’s F&O contracts is known as the market-wide position limit, and it is regulated by stock exchanges. A stock’s F&O contracts enter the ban period if the open interest exceeds 95% of the market-wide position limit.

According to the NSE, regular trading in derivatives on the security doesn’t start again until the total open interest across exchanges drops to 80% or less than the market-wide position limit.