The National Stock Exchange (NSE) banned the trading of futures and options (F&O) up to one stock/security on Thursday, August 25, 2022.

Also Read| Indian government plans to sell at least 51% of IDBI Bank: Report

According to the NSE, stocks are prohibited in the F&O sector because they have exceeded 95% of the market-wide position limit (MWPL).  

Also Read| NDTV shares surge 5% to 14-year high after Adani group acquires 29% stake

RBL Bank is the stock/security that has been placed on the National Stock Exchange’s futures and options (F&O) ban for trade on Thursday, August 25, 2022.

Also Read| Inflation remains ‘unacceptably and uncomfortably’ high: RBI Governor

The derivative contracts in the aforementioned securities have exceeded 95% of the market-wide position limit and have thus been placed in a ban period by the stock exchange.

Also Read| US Fed issues guidance for banks considering cryptocurrency activities

“It is hereby informed that all clients/members shall trade in the derivative contracts of said security only to decrease their positions through offsetting positions,” the stock exchange said.

Also Read| Indian government to discuss possibility of common charger for all phones, laptops

“Any increase in open positions shall attract appropriate penal and disciplinary action,” NSE added.

Also Read| The 2008 market crash: Inside the doomsday machine and a brief history

During the F&O ban period, no new positions are permitted for any of the F&O contracts in that stock.

Also Read| How post-pandemic markets have behaved historically

The stock exchanges set the MWPL (market-wide position limit), which is the maximum number of contracts that can be open at any moment (Open Interest) thus, the F&O contracts of that stock enter a ban period if the open interest exceeds 95% of the MWP.