The National Stock Exchange (NSE) has banned the trading of futures and options (F&O) on up to eight stocks/securities on Wednesday, September 15, 2021. According to the NSE, these stocks are prohibited in the F&O sector because they have exceeded 95 percent of the market-wide position limit (MWPL).
The derivative contracts in the aforementioned securities have exceeded 95 percent of the market-wide position limit and have thus been placed in a ban period by the stock exchange.
Indian Railway Catering and Tourism Corporation (IRCTC) is again under the F&O ban after being removed on September 14, 2021. Escorts, Sun TV, Vodafone Idea (Vi), LIC Housing Finance, Canara Bank, Exide Industries, and National Aluminium Company (Nalco) are also among the stocks that are under F&O ban 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.
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 percent of the MWPL.
Sebi recommends tightening the timeline for filing settlement applications
Sebi, the market regulator, recommended tightening the timing of the settlement process on Tuesday, proposing to put the entire period for filing the application at 60 days following receipt of the notice to show cause.
According to Sebi's consultation document, the overall timeframe for filing the application for settlement may be set at 60 days from the date of receipt of the show-cause notice or the supplemental notice, whichever is later.