Tata Chemicals continues to be on NSE’s F&O ban list

A list of three stocks was banned from trading on Wednesday August 17, 2022 in the Futures and Options (F&O) segment by the National Stock Exchange (NSE). The securities were banned in the F&O segment because they crossed 95% of the market-wide position limit (MWPL), according to the NSE.

Balrampur Chini, Delta Corp and chemical stock Tata Chemicals continue to be on the F&O ban list by the exchange for today. The NSE updates the list of securities in F&O ban for trading daily.

Derivative contracts on the mentioned securities have breached 95% of the market-wide position limit and are therefore currently blacklisted by the exchange, NSE said.

“It is hereby advised that all clients/members will only trade derivative contracts in these securities to decrease their positions through offsetting positions,” the exchange said. “Any increase in open positions will result in appropriate criminal and disciplinary sanctions,” NSE said. added.

No new positions are allowed for any of the F&O contracts in that particular stock when it is under the F&O blackout period. The MWPL (market-wide position limit) is set by the exchanges which is the maximum number of contracts that can be opened at any time (Open Interest), therefore, F&O contracts for this stock enter a period blackout if the open interest crosses 95% of the MWPL.

Meanwhile, Indian indices could get off to a positive start. Benchmark BSE Sensex rose over 379 points while Nifty closed above the 17,800 level on Tuesday. For Wednesday, SGX Nifty, Singapore Nifty which is the Indian Nifty traded on the Singapore Stock Exchange, indicates a higher open for the Indian stock market today.

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