In today’s stock market scenario, the National Stock Exchange (NSE) has imposed a ban on trading in the futures and options (F&O) segment for a total of 13 stocks. The ban comes into effect on Monday, February 26, 2024, as these securities have surpassed 95% of the market-wide position limit (MWPL), as reported by the NSE. It’s important to note that while these stocks are prohibited from trading in the F&O segment, they remain available for trading in the cash market.
The list of stocks under the F&O ban for February 26 includes Aditya Birla Fashion and Retail, Ashok Leyland, Balrampur Chini Mills, Biocon, Canara Bank, GMR Infra, GNFC, Hindustan Copper, Piramal Enterprises, PVR INOX, RBL Bank, SAIL, and ZEEL.
The NSE regularly updates the F&O ban list, and stocks are placed on this list when their derivative contracts exceed 95% of the market-wide position limit.
According to NSE, “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. Any increase in open positions shall attract appropriate penal and disciplinary action.”
During the F&O ban period, no fresh positions are permitted for any of the F&O contracts associated with the specified stocks. Traders and investors are advised to navigate these restrictions accordingly.
In Friday’s market activity, the Sensex and Nifty experienced volatility, reversing early gains due to selling pressure in IT and select banking shares. The BSE Sensex closed marginally lower by 15.44 points or 0.02% at 73,142.80 points, while the Nifty closed down by 4.75 points or 0.02% at 22,212.70 points. The market witnessed 17 constituents of the Sensex closing in the red and 13 in the green.
