The National Stock Exchange (NSE) has banned the
trading of futures and options (F&O) up to two stocks/securities on Tuesday,
June 21, 2022.

Also Read| FIFA World Cup 2030: Argentina, Uruguay among 4-nation bloc considering bid

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| Impact of US Feds’ biggest rate hike since 1994 on India

Indiabulls Housing Finance and RBL Bank are the
stocks/securities that have been placed on the National Stock Exchange’s
futures and options (F&O) ban for trade on Tuesday, June 21, 2022.

Also Read| Wall Street enters bear market: What does it mean for investors

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| India inflation down by 0.75%: What it means for consumers

“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| Why US inflation is going up and when will it come down

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

Also Read| Explained: The impact of bond yields on markets and investors

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

Also Read| 5 reasons why Indian rupee had a great fall

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.