RBL Bank is still one of the stocks on the NSE that are subject to a F&O ban

The market-wide position limit for derivative contracts in the aforementioned equities has been breached by 95%.

The National Stock Exchange has put a total of two equities on hold for trading on Tuesday, June 21, 2022 in the futures and options (F&O) sector (NSE). According to the NSE, the securities have been placed on hold in the F&O segment after exceeding 95 percent of the market-wide position limit (MWPL).

RBL Bank, Indiabulls Housing Finance, and RBL Bank are the three stocks that remain on the stock exchange’s F&O ban list, whereas Delta Corp, which was on the list on prior days, is no longer on the list today. Every day, the NSE updates the list of securities that are prohibited from being traded in the F&O market.

The stock exchange has placed the derivative contracts in the stated securities in a ban period since they have crossed 95 percent 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 securities 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.

When a stock is under the F&O ban, no new positions are allowed in any of the F&O contracts in that stock. The MWPL (market-wide position limit) is defined by stock exchanges and is the maximum number of contracts that can be open at any given moment (Open Interest). As a result, if the open interest of that stock exceeds 95 percent of the MWPL, the F&O contracts of that stock enter a ban period.

Meanwhile, stock markets are expected to remain jittery on Tuesday due to rising pricing pressures and fears that monetary tightening in a number of countries may lead to further losses. The SGX Nifty, or Singapore Nifty, which is the Indian Nifty traded on the Singapore Stock Exchange, suggests that the Indian stock market is off to a slow start.