NSE F&O Ban: Escorts and PNB are under ban today

The National Stock Exchange (NSE) banned the trading of futures and options (F&O) of two stocks, Punjab National Bank (PNB) and Escorts, on Wednesday, November 3, 2021.

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These stocks are prohibited in the F&O segment because they have exceeded 95% of the market-wide position limit (MWPL).

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On the other hand, the Indian Railway Catering and Tourism Corporation (IRCTC), which was on the ban list on Friday, is out of the NSE’s list for today.

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“It is hereby informed that all clients/members shall trade in the derivative contracts of said security (PNB and Escorts) 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.

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