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5 Stocks of NSE in Futures & Options Ban List today
Last Updated: 10th December 2022 - 07:31 am
One of the popular measures of risk management in the futures and options market is the daily F&O ban list that NSE puts out. As of Thursday, there were 5 stocks in the ban list and no fresh positions are allowed in these stocks. Trades can only close existing positions in futures and options and any fresh positions either on the long side or short side are barred till the time the stock remain in the ban list.
ISIN |
Scrip Name |
NSE Symbol |
MWPL |
Open Interest |
Limit for Next Day |
OI/MWPL |
INE124G01033 |
DELTA CORP LIMITED |
DELTACORP |
35604699 |
28862700 |
No Fresh Positions |
81.06% |
INE148I01020 |
INDIABULLS HSG FIN LTD |
IBULHSGFIN |
68933088 |
65676600 |
No Fresh Positions |
95.28% |
INE669E01016 |
VODAFONE IDEA LIMITED |
IDEA |
1606294231 |
1517880000 |
No Fresh Positions |
94.50% |
INE976G01028 |
RBL BANK LIMITED |
RBLBANK |
102172032 |
84140600 |
No Fresh Positions |
82.35% |
INE114A01011 |
STEEL AUTHORITY OF INDIA |
SAIL |
289139949 |
277718250 |
No Fresh Positions |
96.05% |
This is one of the ways by which NSE manages the risk of F&O players by automatically restricting the speculative F&O activity in stocks that are extremely volatile.
Here is what you need to know about how the bank list is created
The exchange communicates the ban list to the Clearing Members who are required to monitor their overall position limits accordingly. In addition, the exchange also monitors as part of its regular surveillance, apart from the compliance and back office monitoring at the broker level. Here are the highlights.
1) At the end of each day, Exchange disseminates the aggregate open interest across all Exchanges in the futures and options on individual scrips along with the market wide position limit for that scrip.
2) The next step is to test whether the aggregate open interest for any scrip exceeds 95% of the market wide position limit for that scrip. Any stock where the open interest exceeds 95% of MWPL, will come in the ban list.
3) From the next trading day onwards the client/ TMs should trade only to decrease their positions through offsetting positions till the normal trading in the scrip is resumed. That means you can cover your long or short positions, but not take fresh positions.
4) The normal trading in the scrip is resumed only after aggregate open interest across Exchanges comes down to 80% or lower of the MWPL. In the above table, Delta and RBL Bank had touched 95% but are yet to come down below 80%, so they stay in ban period.
5) The trading system has a facility to display an alert as soon as the open interest on the NSE in the futures and options contract of any stock exceeds 60% of the market wide position limit (MWPL). Such alerts are displayed at time intervals of 10 minutes, but trading members must be careful not to disable such alerts.
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