The two equities listed with a F&O ban on the NSE now include Delta Corp

The NSE’s F&O ban list continues to include Indiabulls Housing Finance as of today.

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The National Stock Exchange has restricted trading in a total of two equities on Wednesday, July 27, 2022 in the futures and options (F&O) sector (NSE). According to the NSE, the securities have been banned from trading in the F&O segment because they exceeded the MWPL by 95%.

The stock exchange’s F&O ban list continues to include Indiabulls Housing Finance for today, while Delta Corp was added to the list of two stocks subject to the restriction on Wednesday. Every day, the NSE updates its list of securities that are banned from trading in F&O.

One of the top home financing companies in India is Indiabulls Housing Finance, a member of the Indiabulls Group. While Delta Corp owns and runs casinos and is a firm that caters to Indians (live, electronic and online).

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The stock exchange has currently placed the derivative contracts in the aforementioned securities that have exceeded 95% of the market-wide position limit under the ban period, 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.

For any of the F&O contracts on that specific stock while it is in the F&O ban period, no new holdings are permitted. The market-wide position limit (MWPL), which is the maximum number of contracts that may be open at any given moment (Open Interest), is established by the stock exchanges. As a result, the F&O contracts for that stock enter a ban period if the open interest exceeds 95% of the MWPL.

Indian indexes, meanwhile, could have a rocky start. On Tuesday, the benchmark indexes Sensex and Nifty ended down, with technology sectors taking the worst hit as investors grew nervous about this week’s probable significant increase in interest rates in the United States. The Singapore Stock Exchange’s Singapore Nifty, which is the Indian Nifty traded there, predicts a flat-to-negative start for the Indian stock market on Wednesday.