NSE F&O Ban: Zee, Exide, Sail and others under ban today
- NSE has banned the trading of F&O on up to six stocks on Friday, September 17, 2021
- According to the NSE these stocks have exceeded 95 percent of MWPL
- IRCTC has been removed from the list
The National Stock Exchange (NSE) has banned the trading of futures and options (F&O) on up to six stocks/securities on Friday, September 17, 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).
Escorts, Sun TV, National Aluminium Company (Nalco), SAIL, Zee Entertainment, and Exide Industries are the six stocks on the NSE's F&O ban list.
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.
“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.
The Indian Railway Catering and Tourism Corporation (IRCTC) has been removed from the list. Since Rakesh Jhunjhunwala's Rare Enterprises and BofA Securities Europe SA purchased Zee Entertainment Enterprises Limited shares in open market transactions, the company's stock has been a hot topic.
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.