F&O ban list, Jan 28: PNB, Manappuram, Mahanagar among four stocks; check full list

The National Stock Exchange on Tuesday banned trading in four stocks in the futures and options (F&O) segments as these securities crossed 95% of the market-wide position limit (MWPL).

The MWPL is the maximum number of contracts that can be opened at any particular time.

The stocks included in the list are IndiaMART, Manappuram Finance Limited, Mahanagar Gas Limited (MGL) and Punjab National Bank (PNB).

“The derivative contracts in the below mentioned security have crossed 95% of the market-wide position limit and are currently in the ban period,” the stock exchange had said in a statement. “All clients/members shall trade in the derivative contracts of said security only to decrease their positions through offsetting positions. Any increase in open positions shall attract appropriate penal and disciplinary action,” NSE further said.

The ban will be lifted once the position falls below 80%. Traders will be available for trading in the cash market.

No new positions are allowed when the stock exchanges place F&O contracts in a particular stock in the ban period. The National Stock Exchange updates the list of securities on the F&O ban list daily.

Meanwhile, Indian markets are expected to see some respite on Tuesday after a sharp sell-off on Monday. The GIFT NIFTY futures traded 114 points higher on Tuesday morning, indicating a positive start for the Indian markets. The US markets witnessed a sharp selloff in the tech stocks, especially in Nvidia, wiping out close to $600 billion from it market cap in a single day.

The US markets on Monday saw a historical day as Nvidia witnessed a nearly 17% fall in share price, wiping out a record amount of market capitalisation in a single day, nearly $600 billion. Consequently, the NASDAQ index saw a 3% decline at the end of the trading session.