The National Stock Exchange (NSE) banned the trading of futures and options (F&O) up to two stocks/securities on Monday, September 12, 2022.
Also Read| Week ahead: Inflation data, oil prices to weigh on Sensex, Nifty
According to the NSE, stocks are prohibited in the F&O sector because they have exceeded 95% of the market-wide position limit (MWPL).
Ambuja Cement and Delta Corp are the stocks/securities that have been placed on the National Stock Exchange’s futures and options (F&O) ban for trade on Monday, September 12, 2022.
Also Read| Week in review: Falling crude prices, positive global cues boost Sensex, Nifty
The Sensex surged 104.92 points or 0.18% to close at 59,793.14 and the Nifty was up by 34.60 points or 0.19% and concluded at 17,833.35 on Friday.
The BSE benchmark traded in a range of 60,119.80 and 59,634.39. There were 13 stocks advancing against 17 stocks declining on the index.
Also Read| Trade Setup: Top 15 things to know before market opens on September 12, 2022
The NSE benchmark touched a high of 17,786.00 and a low of 17,925.95. There were 26 stocks advancing against 24 stocks declining on the index.
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| Trending Stocks: Reliance, Zydus, SpiceJet and others in news today
“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.
“Any increase in open positions shall attract appropriate penal and disciplinary action,” NSE added.
Also Read| Stocks to watch on Friday, September 12, 2022
During the F&O ban period, no new positions are permitted for any of the F&O contracts in that stock.
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.