The National Stock Exchange has added two public sector undertaking (PSU) stocks to its Futures and Options (F&O) ban list for trade on Feb 14, 2023, while retaining two stocks from the previous sessions.
The state-owned industrial giant Bharat Heavy Electricals (NS:BHEL) Limited and the PSU lender Punjab National Bank (NS:PNBK) are the latest entrants to the F&O ban list on Tuesday.
Meanwhile, the domestic bourse continues to hold the Adani-led stock Ambuja Cements (NS:ABUJ) and the home finance company Indiabulls (NS:INBF) Housing Finance to its ban list on Tuesday’s session.
The aforementioned securities have exceeded 95% of the market-wide position limit (MWPL), thereby banned for trade under the futures and options segment in the day, and shall continue remaining on the list until their positions fall below 80%.
While on the Futures and Options ban list, no new/fresh F&O positions can be bought or sold for the stock(s), else that trader gets penalised. Traders with existing positions in that security can unwind their positions.
Moreover, the market-wide position limit is set by the stock exchanges.
The NSE directs all clients/members to trade in the derivative contracts of the aforementioned securities only to decrease their positions through offsetting positions.
The leading stock exchange updates the list of securities in the F&O ban for trade every day.