16 Aug , 2022 By : Kanchan Joshi
A total of three stocks have been put under the ban for trade on Tuesday, August 16, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE). The securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.
Balrampur Chini and Delta Corp continue to be part of F&O ban list by the stock exchange for Tuesday, whereas chemical stock Tata Chemicals has been added to the stock ban list for today. The NSE updates the list of securities in F&O ban for trade everyday.
The derivative contracts in the mentioned securities have crossed 95% of the market-wide position limit and are therefore have been currently put in the ban period by the stock exchange, said NSE.
“It is hereby informed that all clients/members shall trade in the derivative contracts of said securities only to decrease their positions through offsetting positions," the stock exchange said. "Any increase in open positions shall attract appropriate penal and disciplinary action," NSE added.
No fresh positions are allowed for any of the F&O contracts in that particular stock when it is under the F&O ban period. The MWPL (market-wide position limit) is set by the stock exchanges which is the maximum number of contracts that can be open at any time (Open Interest), therefore, the F&O contracts of that stock enter a ban period if the open interest crosses 95% of the MWPL.
Meanwhile, Indian indices may witness a strong start as for Tuesday, SGX Nifty, Singapore Nifty that is the Indian Nifty traded in the Singapore Stock Exchange, indicates a gap-up opening for the Indian stock market today. Benchmark BSE Sensex rose by 130 points while Nifty extended gains for a fifth straight session in a range-bound trade on Friday. The stock market was closed on Monday for a public holiday.
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