NSE F&O Ban: Delta Corp is under ban on Tuesday, September 6, 2022

The National Stock Exchange (NSE) banned the trading of futures and options (F&O) up to one stock/security on Tuesday, September 6, 2022.

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

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Delta Corp is the stock/security that has been placed on the National Stock Exchange’s futures and options (F&O) ban for trade on Tuesday, September 6, 2022.

The foreign institutional investors (FIIs) sold shares worth a net Rs 811.75 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 533.77 crore in the Indian equity market on September 5, as per provisional data available on the NSE.  

The Sensex surged 442.65 points or 0.75% to 59,245.98 and the Nifty rose by 126.35 points or 0.72% to 17,665.80 on Monday. 

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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.

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“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.

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

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

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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.