National Stock Exchange (NSE) has said that the derivative contracts in the stocks of these companies have crossed more than 95 percent of the market wide position limit.
Derivatives Contract Position: National Stock Exchange has taken action against nine big companies including Punjab National Bank and Bandhan Bank. L&T Finance and Aditya Birla Fashion are also included in this scope. Their trading in futures and options has been banned. Can Fin Homes, Dixon Technologies, India Mart Intermesh, Mannapuram Finance and Mahanagar Gas are also included under this. This ban will be applicable only for one day on 27 January. However, they can be traded in the cash market on that day too.
Trading of nine companies is banned because
National Stock Exchange (NSE) has said that derivative contracts in the stocks of these companies have crossed more than 95 percent market wide position limit. Therefore, these securities have been kept in the ban period. During this time, opening new positions in futures and options contracts of these stocks will not be allowed.
If someone tries to open a new position, he will be fined and disciplinary action can also be taken against him. The shares of these nine companies were also included in the F&O ban list on Friday, January 24. The ban has been extended for one more day due to the inability to reduce derivatives contract positions in their stocks.
You can trade to reduce your position
A trader can only trade to reduce his position in derivatives contracts in any stock included in the banned list of futures and options. Action can be taken if any kind of increase is made in the open position. Penalty or disciplinary action can be taken against them under the guidelines. SEBI has already issued guidelines for this. Under this, the National Stock Exchange has taken this action. At present, the phase of upheaval continues in the stock market. On Friday, the major benchmark indices of both BSE and NSE closed with a decline.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always consult an expert before investing as an investor.)
