The National Stock Exchange (NSE) has imposed a ban on futures and options (F&O) trading for seven stocks, including Bharat Heavy Electricals Limited (BHEL) and Hindustan Petroleum Corporation Limited (HPCL). This move comes as these stocks surpassed the market-wide position limit (MWPL) of 95%. Other affected companies include Balrampur Chini Mills, Granules India Limited, Hindustan Copper, Indiabulls Housing Finance, and Zee Entertainment Enterprises Limited (ZEEL).
Cash transactions are still permitted for these stocks, and traders can offset existing positions despite the new restrictions. The ban will be lifted once the open market interest falls below the MWPL threshold of 80%. Currently, the open interest for these stocks ranges from 80.5% for ZEEL to 105.1% for BHEL. The NSE routinely monitors market exposure to ensure it remains within acceptable limits.
Traders found engaging in F&O transactions for these stocks despite the ban may face penalties. However, they are allowed to operate in the cash market. This regulatory measure is part of the NSE’s ongoing efforts to maintain market stability and prevent excessive exposure.
In its daily updates, the NSE also removed India Cements Limited, Manappuram Finance Ltd, Multi Commodity Exchange of India (MCX), NMDC Limited, and RBL Bank from the ban list, as their open interests dropped below 80%. While traders in indices are not affected by these bans, the NSE’s vigilance in monitoring stock exposure serves as a crucial tool for market participants navigating trading restrictions. These regulatory actions occur against the backdrop of subtle shifts in the market, with recent declines in the Sensex and Nifty, underscoring the importance of staying informed on regulatory changes for prudent decision-making.